China's Cyberspace Administration (CAC) has called U.S. semiconductor leader Nvidia to address potential security risks linked to its H20 artificial intelligence chips sold in the Chinese mainland. The regulator stated Thursday that the move aims to ensure compliance with national cybersecurity and data protection laws, emphasizing the need to safeguard user information.
This development follows allegations from U.S. AI experts, cited by the CAC, that Nvidia's chips contain mature "tracking and positioning" capabilities. The concerns align with recent legislative efforts in Washington – including a May 2024 bill by Senator Tom Cotton – proposing mandatory location verification systems for exported advanced chips to restrict Chinese access to cutting-edge semiconductor technology.
Democratic Representative Bill Foster, a former particle physicist, confirmed the technical feasibility of post-sale chip tracking during congressional discussions. While Nvidia has not publicly commented, analysts suggest the scrutiny reflects growing global tensions over AI infrastructure control.
The CAC maintains its actions prioritize lawful protection of cyberspace security while fostering responsible technological development. Market observers note the outcome could influence cross-border tech collaborations and semiconductor supply chain strategies across Asia.
