Nvidia Slashes Asia AI Chip Buyer List by Over 50% to Block China Access, FT Reports

Nvidia has reportedly cut its list of authorized Asian customers for artificial intelligence chips by more than half, implementing a new 'white list' to prevent its products from being illicitly diverted to China, according to a report from the *Financial Times*.

Tighter Vetting and 'White List'

Citing three people familiar with the matter, the report published Monday stated that the U.S. chipmaker has intensified its due diligence processes over the past several months. The move is part of a broader compliance effort aimed at enforcing U.S. export controls.

The new 'white list' system means only customers who pass stricter compliance checks are authorized to purchase Nvidia's advanced AI accelerators. The enhanced scrutiny has been particularly focused on potential buyers and resellers in Singapore, Malaysia, and Japan.

Context on U.S. Export Controls

This action reflects Nvidia's efforts to navigate stringent U.S. export regulations designed to restrict China's access to high-performance semiconductor technology, especially for military and surveillance applications. The rules require companies to ensure their products are not rerouted to prohibited Chinese entities through intermediary buyers in other nations.

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The compliance burden on chip designers has grown significantly as they must create robust internal systems to track the end-users of their most powerful products. Failure to comply can result in severe penalties and reputational damage.

Potential Market Impact

Drastically reducing the number of authorized buyers could disrupt supply chains for some smaller cloud service providers and AI startups in the region who may lose direct access to Nvidia's hardware. It highlights the significant operational challenges semiconductor firms face amid the ongoing U.S.-China technology rivalry.

It is important to note that the claims in the *Financial Times* report could not be immediately verified by other news agencies, including Reuters.