(MENAFN) The Cyberspace Administration of China (CAC) on Thursday summoned the American semiconductor leader Nvidia to provide clarification regarding alleged "backdoor security risks" linked to its H20 processing chips.

According to a statement released by the CAC, “recently, serious security issues with Nvidia's computing chips have been exposed.”

The agency noted that there have been earlier calls by US legislators for sophisticated chips exported from the United States to include features for "tracking and location capabilities."

The CAC asserted that US artificial intelligence researchers have disclosed that Nvidia’s chips possess well-developed technologies for tracking, locating, and remotely disabling systems.

"To safeguard the network and data security of Chinese users, and in accordance with the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law," the Cyberspace Administration of China said it had summoned Nvidia on July 31, 2025.

The company was requested to elaborate on the “backdoor security risks” linked to the H20 computing chips distributed in China and to submit all pertinent documentation supporting its claims.

Back in April, Washington imposed fresh limitations on Nvidia’s ability to sell its H20 chips to China, deepening the ongoing tech dispute between the two nations.

Under these rules, the firm must now secure an export license "for the indefinite future" before shipping the chips to Chinese buyers.

As a result of these restrictions, Nvidia anticipates a write-down of up to $5.5 billion in its fiscal first quarter, tied directly to the US export limitations now impacting its H20 chips intended for China.

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