- Nvidia chips under investigation while China questions hidden access in H20 hardware
- Beijing summons Nvidia after the US proposals lit the fears of remote chip surveillance capacity
- TSMC is still building chips for Nvidia, despite regulatory heat and uncertainty in China
The Nvidia position in the global hardware market could soon be under scrutiny after the news of the investigation of the Cyberspace Administration of China.
The Chinese regulator has summoned the American chip manufacturer to explain the potential “rear door” risks in their H20 chips, specifically developed for China after US export restrictions interrupted previous sales of high -end IA processors.
The concern derives from the legislative movements of the United States that propose location verification systems for export -destined chips, that Chinese authorities fear that the sovereignty of the data and privacy of the user may compromise.
Growing suspicion
Although Nvidia has firmly denied the existence of such such vulnerabilities, the Chinese government’s decision to interrogate the problem introduces a new layer of uncertainty in the company’s already complex relationship with its second largest market.
The regulator has not detailed any specific action to be taken, but the call to clarify possible security failures suggests that the company’s access to Chinese institutions could face additional friction.
The official Nvidia position has remained consistent: its chips do not contain any integrated characteristic that can allow access or remote control.
In his own words, “cybersecurity is of vital importance for us”, and there are no “back doors” in Nvidia hardware.
However, this tranquility may not be enough to change the growing skepticism, especially since US and Chinese policies around technology exports continue to diverge.
Meanwhile, Chinese analysts have suggested that the measure could be a political gesture, reflecting concerns that the United States has raised about Chinese technology in recent years.
The remarkable thing is that even in increasing tensions, Nvidia continues to see a robust demand of the H20 chip within China.
According to reports, the company ordered 300,000 TSMC units, which reflects the continuous relevance of the chip for Chinese developers, research institutes and universities, all of which depend largely on high -performance AI chips to boost local progress.
It is even known that military projects and supported by the State use NVIDIA technology.
Despite public optimism and the high profile visits of the CEO of Nvidia, Jensen Huang, to China, the broader regulatory environment is increasingly unpredictable.
The regulator is also investigating the acquisition of the Israeli chips designer, Mellanox Technologies, claiming that Nvidia violated some of the terms in the conditional approval of the agreement in 2020.
The uncertainty of the supply chain, potential import limits or changes in license rules could eventually affect the availability and cost of hardware.
As both nations deepen their technological confrontations, NVIDIA’s global leadership in AI hardware is no longer guaranteed that it is not questioned.
Via Cybernews and PakGazette
