Nvidia has received assurances from the U.S. government regarding the resumption of exports of its H20 AI chips to China, following an earlier effective ban. However, these chips are now likely to face heightened scrutiny from Chinese authorities. The Cyberspace Administration of China (CAC) recently met with Nvidia officials to discuss national security concerns related to the H20 chips, which had restrictions lifted after April’s ban. The CAC requested Nvidia to provide additional documentation addressing security risks, including potential vulnerabilities and backdoors in the chips.
The CAC highlighted reports indicating that Nvidia’s chips contained significant security vulnerabilities, which have raised alarms among U.S. lawmakers. These lawmakers have proposed mandatory tracking features for advanced chips exported from the U.S., which is reminiscent of a bill by Democratic lawmaker Bill Foster. This proposed legislation would enforce built-in location reporting systems in chips and grant authorities the power to remotely disable chips used without appropriate licenses, aimed at combating chip smuggling.
Moreover, the CAC’s statement noted that American AI experts have identified capabilities in Nvidia’s chips for tracking and remote shutdown, which further complicates the export landscape. As concerns mount over the potential advancement of China’s AI capabilities through these chips, U.S. lawmakers continue to express discontent with the lifting of export restrictions.
In the backdrop of these developments, Nvidia has reportedly ordered 300,000 H20 chipsets from contract manufacturer TSMC to meet the demand from China. The ongoing scrutiny from both U.S. and Chinese authorities reflects the complexities and security considerations surrounding advanced semiconductor technology.
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