Nvidia (NASDAQ:NVDA) has reportedly reduced by more than half the number of authorised customers in Asia permitted to purchase its artificial intelligence chips, as the company strengthens compliance measures in response to tighter US export controls, according to a report by the Financial Times citing people familiar with the matter.
The changes are part of broader efforts to prevent advanced semiconductor technology from reaching restricted destinations, particularly China.
New Approval Process Introduced Across Asia
According to the report, Nvidia has introduced a new “white list” of approved customers across Asia and has increased due diligence procedures in Singapore, Malaysia and Japan.
The revised screening process reportedly removed more than half of the company’s previous customer base in the region, although businesses can apply again after meeting the updated compliance requirements.
The move reflects increasing scrutiny of semiconductor exports as Washington seeks to close potential loopholes in its restrictions on advanced AI technology.
US Pressure Drives Stricter Compliance
The Financial Times said Nvidia strengthened its customer approval process following pressure from US authorities to tighten oversight of international chip sales.
The tougher approach comes after US prosecutors charged a co-founder of Supermicro and two employees in March over allegations that they helped smuggle approximately $2.5 billion worth of Nvidia chips into China.
According to the US Department of Justice, the group allegedly used a Southeast Asian company as an intermediary to move Nvidia processors from Taiwan into China in violation of export controls.
Export Restrictions Continue to Shape AI Chip Market
The United States has progressively tightened restrictions on exports of advanced artificial intelligence chips to China since 2021.
Although Nvidia was permitted to supply its H200 AI processor last year, Chinese authorities reportedly opposed the product and restricted domestic sales, partly to encourage the development and adoption of locally produced semiconductor technologies.
The latest compliance measures highlight how geopolitical tensions and export regulations continue to play an increasingly significant role in shaping the global AI semiconductor market.
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