Chinese semiconductor, AI firms form pact as Nvidia faces inquiry on H20 chip’s security


The alliance reflected the growing efforts in the country’s semiconductor industry and nascent AI sector to push forward Beijing’s tech self-sufficiency agenda – covering computing hardware, software and services – amid US export restrictions on China and rising geopolitical tensions.

The CAC said its inquiry was based on recent reports of “serious security issues” involving Nvidia’s processors and demands from US lawmakers to add tracking features to advanced chips. Moreover, US AI experts indicated that remote-control technologies related to Nvidia’s chips have matured.

People walk past an Nvidia display advertisement in Taipei during the Computex 2025 trade show on May 19, 2025. Photo: AFP
People walk past an Nvidia display advertisement in Taipei during the Computex 2025 trade show on May 19, 2025. Photo: AFP
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