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Chinese semiconductor, AI firms form pact as Nvidia faces inquiry on H20 chip’s security
The Model-Chips Ecosystem Innovation Alliance has 10 members, including Huawei’s Ascend unit and Tencent-backed AI firm StepFun
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Ann Caoin Shanghai
A group of Chinese semiconductor and AI companies has formed an alliance to push the adoption of locally developed processors for artificial intelligence projects, as mainland regulators question Nvidia about any “back door” risks in its H20 chips.
Initial members of the Model-Chips Ecosystem Innovation Alliance include Tencent Holdings-backed AI start-up StepFun, Infinigence AI, SiliconFlow, Huawei Technologies’ Ascend computing business unit, MetaX, Biren Technology, Enflame, Iluvatar Corex, Cambricon Technologies and Moore Threads.
The alliance was announced by Shanghai-based StepFun at the World Artificial Intelligence Conference (WAIC), which concluded on Monday.
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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 group’s establishment comes amid an inquiry that the Cyberspace Administration of China (CAC) was conducting on Nvidia, which was recently given the green light by the Trump administration to resume shipments of its China-specific H20 AI processors.
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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.

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