China Pressures Nvidia Over Serious Security Issues in H20 Chip, Demands Explanation

China Tightens Scrutiny After Resumption of H20 Chip Imports
Cites "Serious Security Issue" and Demands Explanation from Nvidia

Chinese authorities have recently pressured Nvidia, claiming that a "serious security issue" has been discovered in the company's H20 chip, which was recently approved for supply to the United States.

AFP Yonhap News

According to China Central Television (CCTV) on July 31, the Cyberspace Administration of China summoned Nvidia for a "yuetan" meeting and demanded that the company explain and provide evidence regarding the backdoor (a pathway that bypasses security or authentication procedures to access information and communication networks) security risks associated with the H20 chip sold in China. "Yuetan" refers to a type of verbal warning in which Chinese authorities summon companies, institutions, or individuals to point out faults, demand corrections, or communicate requirements.

CCTV explained that this measure is intended to protect the internet and data security of Chinese users and is in accordance with domestic regulations such as the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law. Chinese authorities stated, "It has recently been revealed that there are serious security issues in Nvidia's computing chips." They further pointed out, "Previously, a U.S. lawmaker demanded that all advanced chips exported by the United States must have a 'location tracking' function, and an American AI expert stated that the location tracking and remote shutdown technologies in Nvidia chips are already at a mature stage."

Amid global competition with the United States, China has been promoting "advanced technology self-reliance" and has strategically fostered AI and semiconductor sectors. As a result, it is evaluated that China, led by companies such as Huawei, has made some progress in localizing high-performance chip technologies.

The Donald Trump administration imposed a ban in April, citing "national security," that prevented Nvidia, the world's leading AI chipmaker, from selling its H20 chip to China. Recently, however, the U.S. allowed exports of the H20 chip to China again, on the condition that China lifts its restrictions on rare earth exports to the United States.

In this context, on July 20, after Nvidia resumed sales of the H20 chip in China, the Ministry of State Security, China's counterintelligence agency, publicly warned that some overseas-manufactured semiconductors carry backdoor risks.