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2d ago

China Probes Security Risks in Nvidia’s H20 Chips as U.S. Licenses Remain Pending

Beijing’s internet regulator summoned Nvidia to clarify alleged backdoors following its order of 300,000 additional chips from TSMC

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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)
An exhibitor introduces the Nvidia DGX Spark to visitors at the Nvidia exhibition booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, Thursday, July 17, 2025. (AP Photo/Andy Wong)

Overview

  • Nvidia resumed shipments of its China-tailored H20 GPUs after the Trump administration overturned a ban imposed in April.
  • The U.S. Commerce Department has pledged forthcoming export licenses for the H20 chips, but formal approvals are still pending.
  • To meet unexpected Chinese demand, Nvidia placed a new order for 300,000 H20 units from contract manufacturer TSMC.
  • China’s Cyberspace Administration called in Nvidia executives to explain reports of embedded tracking, positioning and remote-shutdown functions.
  • U.S. lawmakers have introduced bills that would mandate location-tracking and remote-kill features in advanced AI chips destined for foreign markets.