China’s Cyberspace Administration said it summoned Nvidia Corp. representatives in Beijing on 31 July to explain “serious security risks” it believes may be embedded in the U.S. company’s H20 artificial-intelligence chips. The regulator asked Nvidia to provide technical documentation addressing allegations that the processors contain backdoor vulnerabilities that could enable location tracking and remote shutdown of the hardware. The H20 was designed specifically for the Chinese market to comply with U.S. export controls. Beijing’s move follows calls in Washington for advanced chips shipped abroad to carry mandatory tracking features; a bipartisan bill introduced in May by Senator Tom Cotton and Representative Bill Foster would require such safeguards. The CAC said the reported functions could compromise Chinese user data and national security, but did not disclose evidence of breaches. The inquiry threatens to cloud Nvidia’s efforts to revive China sales after Washington this month reversed an earlier ban on exporting the H20. Industry sources told Reuters the firm recently placed an order with Taiwan Semiconductor Manufacturing Co. for about 300,000 H20 units to meet pent-up demand. Nvidia, which derives a significant share of data-center revenue from China, has not commented on the regulator’s statement. Beijing has previously cited security grounds to restrict products from U.S. chipmakers such as Micron, underscoring the ongoing sensitivity of semiconductor trade between the world’s two largest economies.
$NVDA (+1.9% pre) China Summons Nvidia Over H20 Chip Security Days After US Talks - BBG https://t.co/Y1Eyx2RbUE
#China's Cyberspace Authority Summons #NVIDIA, Demands Proof of H20 Chip Security https://t.co/Gm1F7crU1G
The Cyberspace Administration of China (CAC) is investigating the sale of NVIDIA's AI chips in the country, amid concerns about security breaches following claims that Washington plans to equip such chips with location tracking and other mechanisms. 🔗 https://t.co/tsKDbR8GI2 https://t.co/EgpQS9qRzA