Overview

• The US Commerce Department has begun issuing licenses for Nvidia to export its H20 AI chips to China, reversing an April ban and potentially averting up to $8 billion in lost sales.
• China’s Cyberspace Administration this week summoned Nvidia representatives to demand detailed documentation and assurances over alleged security backdoors in the H20 hardware.
• Nvidia has consistently denied any embedded vulnerabilities in its chips and emphasized its commitment to rigorous cybersecurity standards.
• The company has ordered 300,000 H20 units from Taiwan Semiconductor Manufacturing Company to meet robust demand among Chinese research institutes, universities and private developers.
• Analysts warn that Nvidia may face declining market share in China as domestic competitors like Huawei and Cambricon advance under Beijing’s semiconductor self-sufficiency drive.