Nvidia Cuts Asian AI Chip Customers by Over Half Under US Pressure

Nvidia cut its Asian AI chip customer whitelist by over half after stricter compliance reviews conducted in recent months under US government pressure to prevent products from reaching China, according to unnamed sources cited by the Financial Times on July 14. The crackdown targeted so-called neocloud providers in Singapore, Malaysia, and Japan through on-site audits verifying data center operations and end-user contracts. The intensified enforcement follows US efforts to dismantle chip black market channels, with the Commerce Department providing regulatory support for Nvidia's expanded due diligence operations.

Nvidia Conducts On-Site Audits Across Asian Markets

Nvidia employees conducted physical visits to customer data centers, reviewed contracts, and interviewed end users to verify legitimate business operations under the new審查 mechanism, according to sources familiar with the process. Companies that failed initial screening can reapply after implementing corrective measures. The US Commerce Department participated by providing regulatory and political support for the compliance initiative.

US Prosecutors Indict Supermicro Co-Founder for Chip Smuggling

In March, US prosecutors indicted a Supermicro co-founder and several employees for allegedly smuggling $2.5 billion worth of chips to China. Prosecutors stated the defendants used a Southeast Asian company as a "pass-through entity" to smuggle Nvidia chips from Taiwan to China through third-party intermediaries.

China AI Chip Shortage Intensifies Amid Enforcement

The enforcement wave has further aggravated AI chip shortages in China's market, according to industry sources. Demand surged as Chinese tech companies expanded adoption of AI agents, while domestic supply remains far below requirements. Sources familiar with official positions indicated that large-scale H200 chip imports to China remain highly unlikely despite lobbying efforts by some tech companies to Beijing authorities.

FAQ

How many Asian customers did Nvidia remove from its whitelist? Nvidia removed over half of its Asian AI chip customers from the approved whitelist after conducting stricter compliance reviews in recent months, according to unnamed sources cited by the Financial Times on July 14.

What enforcement action did US prosecutors take against chip smuggling? In March, US prosecutors indicted a Supermicro co-founder and several employees for allegedly smuggling $2.5 billion worth of chips to China using a Southeast Asian company as a pass-through entity to route Nvidia chips from Taiwan.