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Nvidia Orders 300,000 H20 Chips as China Probes Security Risks

China’s Cyberspace Administration has demanded documentation on H20 chip vulnerabilities as US export licenses remain unapproved.

Overview

  • Nvidia placed a 300,000-unit order with TSMC to replenish H20 AI GPUs for the Chinese market following a rare-earths deal that reversed its April export ban.
  • The US Department of Commerce still requires export licenses for H20 shipments to China and has not yet granted approval for the pending applications.
  • China’s Cyberspace Administration summoned Nvidia executives to explain alleged backdoor features enabling tracking, positioning and remote shutdown functions in the H20 chips.
  • The regulator has formally requested detailed technical documentation on purported security risks before authorizing H20 deployments within China’s networks.
  • A bipartisan group of 20 US national security experts and lawmakers has urged Commerce Secretary Howard Lutnick to reinstate the H20 export ban and mandate built-in tracking mechanisms.