8/04/2025

China's chip self sufficiency is a death knell to American chip manufacturers

China is now telling Jensen Huang of Nvidia to prove that its H20 chips sold in China is secure, meaning that China is confident enough now to do away with Nvidia chips in China if proof is not forthcoming. True or not, some are talking about a kill-switch backdoor that could be detrimental for Chinese AI developers. China does not have to prove any security breaches by Nvidia, just like the USA not needing to prove that Huawei is a security threat to ban it completely earlier. Let us watch the show developing.

The USA wants to punish entities and countries using Huawei chips, which means that such Huawei chips are really competitive in performance and no pushovers to elicit such a response. In return China is paying the USA back in its own coin by going after Nvidia for a start. I think that is perfectly fair with USA claiming Huawei chips as violating USA export controls. China can use National Security Issues against Nvidia and other USA chip manufacturers doing business in China. The Chinese market is one big chip market that is important for many, including TSMC, from which Nvidia is using to make its H20 chips.

There have been warnings by some analyst about the H20 chips from Nvidia and about Nvidia wanting to continue having a strong foothold in China for nefarious reasons, knowing that AI development in China is not playing second fiddle to USA entities.


Anonymous

2 comments:

Anonymous said...

Nvidia is trying to con China with outdated H20 chips according to one Chinese analyst. There is even the claim that those H20 chips have a backdoor for doing mischief. Now that is bad news for Jensen Huang. It is now up to Nvidia to prove that it is not true, which is not going to be provable, just like Huawei communication equipment. As they say, the sword can cut both ways. What is sauce for the goose is also sauce for the gander.

The Chip War has entered a new phase, using chips for sabotage purposes. You see, the USA never has good intentions even if they allow high-end chips to enter the Chinese market. And China knows all the sinister moves by the USA. China must develop its own chips for all purposes and discard the usage of USA, Taiwanese, Japanese and South Korea chips. The Chinese are even moving away from MacDonald chips, having now made their own, LOL.

Anonymous said...

China has all the experts to scan through the software and hardware embedded in the H20 chips. There is no way to hide, disguise or conceal such mischievous acts.