Nvidia Summoned by Chinese Regulators Over H20 Chip Security Concerns

Nvidia has been summoned by China's cyberspace regulator over security risks related to its H20 AI chips. The regulator claims the chips pose "serious security issues." Nvidia's representatives will be required to address the concerns.

BEIJING, July 02, 2025 — China's Cyberspace Administration of China (CAC) has summoned Nvidia to address potential security risks related to its H20 artificial intelligence (AI) chips. The regulator expressed concerns over the chips' potential impact on Chinese user data and privacy rights [1].

The CAC summoned Nvidia on Thursday, July 31, to explain whether its H20 chips have any backdoor security risks. Nvidia, a U.S. semiconductor maker, has been under scrutiny following a U.S. proposal to require location verification mechanisms for advanced chips sold abroad. The proposal aims to curb Chinese access to advanced U.S. semiconductor technology [2].

Nvidia has denied having any backdoors in its chips, stating that its products do not allow remote access or control. The company has been a focus of U.S.-China relations, with the U.S. reversing an April ban on Nvidia selling the H20 chip to China this month [2].

The H20 chip was developed for the Chinese market after the U.S. imposed export restrictions on advanced AI chips in late 2023. The chip's market path has been turbulent due to shifting regulatory policies [1].

Analysts suggest that China's move is likely a symbolic stance against U.S. authorities' concerns. Despite the warning, analysts do not believe Beijing will introduce regulatory hurdles that will effectively drive Nvidia out of China, as the country still needs Nvidia chips for domestic research and applications [2].

Nvidia's products are highly sought after by Chinese tech companies, military bodies, state-run AI research institutes, and universities. The company recently placed an order with contract manufacturer TSMC for 300,000 H20 chipsets due to strong demand [2].

Nvidia is also facing an antitrust investigation in China, with the State Administration for Market Regulation investigating the chipmaker over suspected violations of the country's anti-monopoly law [2].

References:
[1] https://www.malaymail.com/news/world/2025/07/31/china-summons-nvidia-over-potential-security-risks-in-h20-ai-chip/185922
[2] https://economictimes.indiatimes.com/tech/technology/nvidia-says-its-chips-have-no-backdoors-after-china-flags-h20-security-concerns/articleshow/123025317.cms?from=mdr
[3] https://www.reuters.com/world/china/chinas-cyberspace-regulator-summons-nvidia-over-h20-chip-risks-2025-07-31/