The United States moves to close a year-old potential loophole that may have allowed advanced AI chips made by Nvidia and AMD to reach Chinese entities through overseas subsidiaries. Reporting across multiple outlets says the U.S. Department of Commerce’s Bureau of Industry and Security issues new guidance instructing companies to stop routing shipments of the most advanced processors to Chinese firms operating outside China without the required export licence. Several sources cite the possibility that chips intended for export controls were getting to Chinese AI companies via subsidiaries based in places such as Malaysia, rather than being shipped directly into China.
Multiple articles reference Nvidia’s advanced Blackwell and Rubin processors and AMD’s MI350x as examples of chips potentially affected, while noting that industry sources estimate large volumes—potentially hundreds of thousands of chips—may already have passed through the gap.
Some coverage also says the guidance does not fully eliminate other related pathways, including data-centre servicing and TSMC foundry due diligence, raising questions about how enforcement will be applied going forward. The overall objective is to better restrict China’s access to semiconductors used for advanced AI development.
