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yesterday

China Probes Nvidia H20 Chips as U.S. Licenses Delay Exports

Pending U.S. export licenses have frozen Nvidia’s plan to ship newly ordered H20 GPUs under Beijing’s security investigation.

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President and CEO of Nvidia Jensen Huang speaks on AI at the return of American manufacturing at the Hill and Valley Forum at the U.S. Capitol on April 30, 2025 in Washington, DC.
Nvidia CEO Jensen Huang talks with Interior Secretary Doug Burgum, left, before President Donald Trump speaks during an AI summit at the Andrew W. Mellon Auditorium, Wednesday, July 23, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
Source: NVIDIA

Overview

  • Nvidia placed a new order with TSMC for 300,000 H20 GPUs on July 30 to replenish stockpiles depleted by surging Chinese demand.
  • The Commerce Department lifted its April ban in mid-July but has yet to approve export licenses required for H20 shipments to China.
  • On July 31, China’s Cyberspace Administration summoned Nvidia representatives to disclose documentation on alleged backdoors, tracking and remote-shutdown features.
  • Beijing’s security review may delay H20 deployment and strengthen incentives for Chinese firms to adopt domestic AI chips such as Huawei’s Ascend series.
  • Meanwhile, U.S. lawmakers are advancing a bipartisan Chip Security Act to mandate tracking and kill-switch capabilities in advanced AI processors.