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Nvidia Denies Backdoors in Chips, Warns US Against Mandating Location Verification

Nvidia (NVDA.O) reiterated in a blog post on Tuesday that its chips do not contain backdoors or kill switches, urging U.S. policymakers to avoid proposals that would require embedding location verification technology in advanced chips. Nvidia warned that such measures would effectively be a “gift” to hackers and hostile actors by creating vulnerabilities.

The statement follows a recent meeting between Nvidia and the Chinese government, which expressed concerns about a U.S. proposal to require chipmakers to include tracking and positioning functions in their products sold abroad, aimed at preventing unauthorized sales to restricted countries. While the White House and U.S. Congress have proposed such measures, no formal rules or technical standards have yet been established.

Nvidia emphasized that backdoors—hidden methods to bypass security controls—pose serious risks. The company stressed, “there is no such thing as a ‘good’ secret backdoor—only dangerous vulnerabilities that need to be eliminated,” reinforcing that their products do not allow remote access or control.

The tech giant warned that embedding backdoors or kill switches in chips would undermine global digital infrastructure and damage trust in U.S. technology worldwide.

China Postpones Approval of $35 Billion Synopsys-Ansys Merger Amid Rising Trade Tensions

China’s State Administration for Market Regulation (SAMR) has delayed its approval of the $35 billion merger between U.S. software companies Synopsys and Ansys, according to a Financial Times report on Friday. The move comes after U.S. President Donald Trump tightened export controls targeting China’s access to advanced semiconductor design software and other sensitive technologies.

The delay underscores the escalating trade tensions between the world’s two largest economies, even as they reached a tentative trade truce during talks in London earlier this week. The current dispute follows China’s previous curbs on mineral exports, prompting the Trump administration to respond with additional restrictions. These include stricter controls on exports of semiconductor design software — a key area of Synopsys’s business — as well as jet engines and various advanced goods destined for China.

The Synopsys-Ansys merger had reached the final stage of the Chinese regulatory process and was widely expected to receive approval by the end of June. However, U.S. actions in late May banning chip design software sales to China added new complications to the review, according to sources cited by the Financial Times.

Neither Synopsys nor Ansys have publicly commented on the reported delay. Reuters, which also attempted to verify the report, said Synopsys declined to comment, while Ansys and Chinese regulators have not responded to inquiries.

The Trump administration’s latest export controls form part of a broader strategy aimed at limiting China’s access to technologies that could enhance its semiconductor manufacturing capabilities and, potentially, its military strength. Washington has also revoked export licenses previously granted to certain suppliers, significantly tightening restrictions on U.S. technology shipments to China.

In a separate development, the U.S. Federal Trade Commission (FTC) last month required Synopsys and Ansys to divest certain assets to address domestic antitrust concerns related to the merger. Synopsys CEO has previously confirmed that the company has obtained regulatory clearances for the deal in all jurisdictions except China.

The $35 billion merger, if completed, would combine two of the most important players in electronic design automation (EDA) and engineering simulation software — sectors crucial for the development of next-generation semiconductors and complex industrial systems.

SiCarrier Claims Its Tools Can Help China Develop Advanced Chips

Chinese chip equipment maker Shenzhen SiCarrier Industry Machines asserted on Thursday that its domestically developed tools could enable China to manufacture advanced semiconductors, despite U.S. export controls on high-end chipmaking technology.

Speaking at the Semicon China industry fair, SiCarrier president Du Lijun noted that while China lacks access to advanced lithography systems due to U.S. trade restrictions, alternative non-optical technologies could be used to produce 5-nanometer (nm) chips. He acknowledged that multi-patterning techniques could increase manufacturing complexity and reduce yields but argued that they provide a viable path for China to progress beyond 7 nm chips.

SiCarrier, founded in 2022 and backed by a state investment fund, supplies major Chinese foundries such as Semiconductor Manufacturing International Corporation (SMIC) and reportedly collaborates with Huawei. The company was among 140 Chinese firms added to the U.S. trade blacklist in December 2023.

The firm’s multi-patterning approach, patented in late 2023, utilizes deep ultraviolet lithography (DUV) and self-aligned quadruple patterning (SAQP) to mimic certain EUV lithography capabilities while reducing costs. This strategy is seen as a potential workaround to Western restrictions on ASML’s extreme ultraviolet (EUV) machines.