The Chinese government has advised local companies against using Nvidia H20 chips in areas related to state and national interests. This measure complicates recovery plans for chip manufacturers in the country.
Reasons for the Ban on Nvidia H20 Chips
According to sources, local firms have been cautioned about the risks of using Nvidia H20 chips for government or national security projects. This ban may also extend to AMD's AI accelerators, although there's no confirmation regarding the MI308 chip specifically.
Nvidia's Response to China's Directives
Nvidia claims its chips are secure and pose no threat to China's national security. The company emphasized that the H20 is not intended for military use and has not been used in government projects. However, concerns from Chinese officials regarding tracking capabilities and remote disabling remain.
China's Strategy to Support Domestic Technologies
Chinese authorities are focused on strengthening their technologies and reducing reliance on American chips. In recent months, the government has urged companies to prioritize domestic chips, which is evidenced by the growing interest in local manufacturers. Nevertheless, despite this guidance, demand for Nvidia H20 chips continues among leading Chinese firms such as Alibaba and Tencent.
The ban on Nvidia H20 chips raises significant questions about the future of technology in China and its reliance on American manufacturers. Despite the push towards self-sufficiency, challenges in accessing alternative solutions in the domestic market remain.
