China Questions Nvidia Over H20 Chip Security Amid Trade Tensions

Nvidia Faces Security Queries from China Over H20 AI Chip Amid Trade Frictions

Chinese authorities have recently summoned representatives from Nvidia. The meeting was to address alleged security vulnerabilities in the company’s H20 AI chips. This development comes only weeks after the U.S. government permitted the resumption of these chip sales to China.

The Cyberspace Administration of China has expressed concerns about potential “backdoors”. These could potentially allow unauthorized remote access or control over the chips.

The H20 chip, which was designed specifically to comply with U.S. export restrictions, had been banned from Chinese markets in April 2025. However, the restrictions were recently lifted as part of ongoing trade negotiations.

Nvidia has categorically denied these allegations. The company stated, “Nvidia does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.”

This security probe comes at a time when Nvidia’s market share in China is projected to drop to 54% in 2025. This is a significant decrease from 66% in the previous year, as per Bernstein research.

Chinese competitors such as Huawei have made significant strides with domestic alternatives during the period of export restrictions. The questioning also coincides with proposed U.S. legislation. This legislation requires AI chip manufacturers to include built-in location tracking capabilities in advanced semiconductors exported abroad.

Source: CNBC