Despite Washington’s increasing export restrictions, advanced artificial intelligence chips from Nvidia are finding their way to Chinese buyers through circumvention routes in nearby countries like Vietnam and Malaysia. The situation highlights the difficulty the White House faces in blocking Beijing’s access to the most sophisticated AI chips.
The Wall Street Journal reported that Nvidia’s Blackwell chips, which were shipped globally in December, have landed in China despite U.S. controls on the sale of AI chips, which have been in place since 2022 and tightened recently. Buyers are routing orders through third-party countries to bypass restrictions.
Other AI chips from Nvidia, including the H800 and H20 models, have also found their way into China, with some purchases reportedly made through Singapore. The Financial Times reported that Singapore has charged three men suspected of breaching U.S. export controls on Nvidia semiconductor sales.
The White House is considering tightening restrictions on Nvidia’s sales of its H20 chips for the Chinese market. Commerce Secretary Howard Lutnick expressed concerns about AI chips being siphoned off to China, stating that it must end.
In a layered approach, outgoing President Joe Biden introduced tougher chip controls in his final week of office, categorizing countries into three groups: U.S. allies with unlimited access, adversaries with no chip imports, and most countries with limited computing power imports.
Analysts have a Strong Buy consensus rating on Nvidia stock, with an average price target of $178.66, implying 43% upside potential.
Source: https://www.tipranks.com/news/nvidia-nasdaqnvda-blackwell-chips-ending-up-in-china-despite-u-s-export-curbs