Core Viewpoint - The recent security issues surrounding Nvidia's H20 computing chip highlight the ongoing technological competition between China and the United States, which may impact domestic capital expenditure in the short term but could ultimately drive the development of a self-sufficient AI industry in China [1] Group 1: Stock Performance - Semiconductor stocks have shown significant gains, with Huahong Semiconductor rising by 5.2% to HKD 41.5, Shanghai Fudan increasing by 3.94% to HKD 32.48, SMIC up by 3.1% to HKD 51.6, and China Electric Power Technology rising by 2.11% to HKD 1.45 [1] Group 2: Regulatory Actions - The National Internet Information Office of China has summoned Nvidia to explain the security risks associated with the H20 chip sold to China, in accordance with the Cybersecurity Law, Data Security Law, and Personal Information Protection Law, with a deadline for submission of relevant materials set for July 31, 2025 [1] Group 3: Industry Implications - Open Source Securities suggests that the incident reflects the broader context of Sino-U.S. technological competition, which may suppress domestic internet companies' capital expenditures in the short term but will push for a more stable and healthy development of China's AI industry in the long term [1] - Huaxi Securities believes that the combination of the U.S. chip security legislation and the H20 incident will accelerate the domestic production of AI computing chips, such as Huawei's Ascend and Cambricon, making the long-term growth trajectory more certain [1]