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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.

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)
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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 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.