BEIJING (Reuters) -China's cyberspace regulator said it has asked U.S. semiconductor maker Nvidia to explain whether its H20 artificial intelligence chips have any backdoor security risks.
The Cyberspace Administration of China said it met with Nvidia on Thursday after U.S. lawmakers called for advanced chips sold abroad to be equipped with tracking and positioning functions.
The regulator said the matter raised concerns over the potential impact on Chinese user data and privacy rights.
Nvidia did not
immediately respond to a Reuters' request for comment.
In May, U.S. senator Tom Cotton introduced a bill that would direct the Commerce Department to require location verification mechanisms for AI chips subject to export restrictions, to curb Chinese access to advanced U.S. semiconductor technology.
Nvidia developed the H20 chip for the Chinese market after the U.S. imposed export restrictions on advanced AI chips in late 2023. The chip has had a turbulent path to market amid shifting regulatory policies.
The U.S. this month reversed an April ban on Nvidia selling the H20 to China.
Reuters reported this week that Nvidia had placed orders for 300,000 H20 chipsets with contract manufacturer Taiwan Semiconductor Manufacturing Co, with one source saying strong Chinese demand had prompted the U.S. company to abandon plans to rely solely on existing inventory.
Nvidia is also facing an antitrust investigation in China. The State Administration for Market Regulation announced late last year it was probing the chipmaker over suspected violations of the country's anti-monopoly law.
The regulator said Nvidia was also suspected of violating commitments it made during its acquisition of Israeli chip designer Mellanox Technologies, under terms outlined in the regulator's 2020 conditional approval of that deal.
(Reporting by Beijing Newsroom; Editing by Jacqueline Wong and Christopher Cushing)
