After China sales collapse, Nvidia shuts AI chip 'back door'
Nvidia has implemented a strict 'white list' system for its Asian customers, disqualifying over 50% of its base to prevent AI chips from being smuggled into China. The company is conducting physical audits of data centers to comply with US export bans.
Why it matters
This reflects the intense geopolitical pressure on semiconductor companies to enforce trade restrictions and prevent the proliferation of advanced AI capabilities in China.
Nvidia has reportedly launched a crackdown on its supply chain, cutting off more than half of its approved customers across Asia. According to a report by The Financial Times, the move is part of a strict new “white list” system designed to close legal loopholes and stop its powerful AI chips from being smuggled into China. The report says that over the past few months, the chipmaker has intensified its compliance checks in key Asian hubs, including Singapore, Malaysia and Japan. Citing sources close to the matter, the report says that the renewed vetting process immediately disqualified more than 50% of Nvidia’s existing customer base in the region.
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