Core Viewpoint - The incident surrounding Nvidia's H20 chip highlights the dependency risks in China's core technology sectors and may accelerate the domestic chip industry's push for self-innovation [2][7]. Group 1: Nvidia's H20 Chip Situation - Nvidia's H20 chip, designed for AI acceleration in compliance with U.S. export restrictions, has faced significant challenges in the Chinese market, including a ban that resulted in over $1 billion in quarterly revenue loss [3][4]. - Following the approval of export licenses by the U.S. government, Nvidia's stock saw a brief uptick, but the subsequent security concerns led to renewed scrutiny from China's internet regulator [4][5]. - Nvidia has firmly denied the existence of backdoors or monitoring software in its chips, emphasizing the importance of building trustworthy systems [5][6]. Group 2: Domestic Industry Response - The H20 chip's security issues have prompted domestic companies to increase their testing and application of local chip alternatives, recognizing the importance of self-reliance in core technologies [7][9]. - Domestic chip manufacturers are rapidly developing competitive alternatives, with notable advancements in performance and capabilities [8][9]. - The incident has created a significant opportunity for domestic GPU solutions in data centers and AI training, potentially reshaping the market landscape [9].