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6d ago

U.S. Clears Nvidia H20 Chip Exports as China Probes Security Risks

China’s cybersecurity regulator has challenged Nvidia over suspected backdoors days after the ban was lifted, fueling fears of accelerated domestic chip development.

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US President Donald Trump shakes hand with China's President Xi Jinping at the end of a press conference at the Great Hall of the People in Beijing on November 9, 2017.
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Overview

  • The U.S. government lifted restrictions on Nvidia’s H20 in early July and is now processing export license applications after President Trump reversed the April ban.
  • Nvidia has placed a 300,000-unit order with Taiwan Semiconductor Manufacturing Company to replenish stock ahead of resumed shipments to China.
  • On July 31, China’s Cyberspace Administration summoned Nvidia to explain alleged backdoors in the H20 chips and to submit related security documentation.
  • Nvidia has denied any backdoor capabilities in its H20 accelerators, affirming there are no remote-access or shutdown features built into the chips.
  • Market analysts warn that renewed exports may accelerate Beijing’s push for homegrown semiconductors and forecast Nvidia’s China market share could fall to about 54% by year-end.