U.S. Commerce Department Tightens AI Chip License Rules for China-Headquartered Firms Abroad
The new guidance covers Nvidia and AMD chips and could affect shipments to Chinese firms overseas, with one source estimating exports in the hundreds of thousands.
- On Sunday, the U.S. Commerce Department moved to close a year-old loophole that allowed companies to export advanced semiconductors, including Nvidia's Rubin and Blackwell processors and AMD's MI350x, to Chinese-headquartered entities located outside China.
- This regulatory gap emerged in May 2025 when the department opted not to enforce the AI Diffusion rule, a policy established during the final days of the Biden administration to govern global access to AI chips.
- Chris McGuire, a Council on Foreign Relations Senior Fellow, called the oversight a "HUGE problem," noting Chinese companies likely purchased chips at scale. One industry source estimated hundreds of thousands of units were exported during the year-long period.
- New guidance now enforces license requirements for advanced chips to entities headquartered in China, regardless of their global location. However, the directive does not mandate that existing data centers cease using or servicing equipment already deployed.
- While this clarification renders Blackwell shipments to these subsidiaries illegal, the extent of damage remains unclear. Nvidia reported that over 20% of its fiscal year 2026 compute revenue was still derived from China through intermediaries, underscoring ongoing market complexity.
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Unexpected guidance suggests that the most advanced artificial intelligence chips in the US may have been reaching subsidiaries of Chinese AI companies located in places like Malaysia for almost a year.
El Periódico
laprovincia.esAs much as Donald Trump praised Xi Jinping on his recent visit to China, the president of the United States continues to tighten the rope of his trade and technological war against the giant of Asia.
US closes loophole that let China get AI chips
The U.S. Department of Commerce moved Sunday to close a year-old potential loophole it created that may have led companies to export the world's most advanced chips, like Nvidia's most sophisticated Rubin and Blackwell processors, as well as AMD's MI350x,…
US to halt Nvidia AI chip sales to Chinese firms
The US Department of Commerce has moved to close a potential loophole that may have led companies to export the world’s most advanced chips – like Nvidia’s most sophisticated Blackwell processors – to subsidiaries of Chinese companies located outside China. The unexpected guidance suggests that the United States’ best AI chips may have been making their way to the subsidiaries of Chinese AI firms based in places such as Malaysia despite broad…
U.S. Commerce Department Closes AI Chip Loophole Exploited by Chinese Firms
The U.S. Department of Commerce has closed a loophole allowing Chinese firms to access advanced AI chips outside China. These chips, from companies like Nvidia and AMD, were likely acquired by Chinese subsidiaries in locations such as Malaysia. The new guidance mandates license requirements for these entities.
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