Nvidia has reportedly removed more than half of its previously approved Asian customers from a new list of companies authorised to purchase its artificial intelligence chips.
The chipmaker introduced the stricter approval system as part of enhanced compliance checks designed to prevent restricted processors from reaching China, according to the Financial Times.
The report cited three people familiar with the matter.
Nvidia Creates New Approved Buyer List
Nvidia has established a new “white list” of Asian customers permitted to purchase its advanced products.
The company has also strengthened its due diligence procedures in major regional markets, including Singapore, Malaysia and Japan.
More than half of Nvidia’s former customers reportedly failed to qualify under the updated checks.
However, excluded companies may be allowed to reapply after making the necessary changes to their compliance procedures.
US Seeks to Close China Chip Export Loopholes
The tighter screening process comes as Washington increases efforts to prevent Chinese companies from obtaining advanced Nvidia chips through third countries.
The United States has introduced extensive export controls targeting the sale of high-performance artificial intelligence processors to China.
Despite those restrictions, US officials remain concerned that Chinese firms may continue accessing prohibited technology through intermediaries and overseas companies.
According to the Financial Times, Nvidia strengthened its compliance system following pressure from the US government.
Nvidia Chip Smuggling Case Raises Concerns
Concerns over illegal chip shipments increased following a major case announced by US prosecutors in March.
Authorities charged a Supermicro co-founder and two employees with allegedly helping to smuggle approximately $2.5 billion worth of Nvidia chips into China.
The US Department of Justice claimed that the group used a Southeast Asian company as an intermediary.
The company allegedly helped move Nvidia processors from Taiwan to China while concealing their final destination.
Nvidia Faces Growing Regulatory Pressure
Washington has restricted sales of advanced AI chips to China since at least 2021.
The measures are intended to limit China’s access to technology that could support the development of advanced artificial intelligence systems and military applications.
Nvidia has repeatedly modified some of its products in an effort to comply with changing US export regulations.
However, tougher enforcement has increased pressure on the company to verify buyers and monitor where its products are ultimately delivered.
China Blocks Domestic Sales of Nvidia H200 Chips
The United States allowed Nvidia to sell its older H200 processor under revised rules last year.
However, Chinese authorities reportedly resisted the decision and restricted domestic sales of the chip.
Beijing’s response was partly aimed at supporting the development of China’s domestic semiconductor industry.
The move also highlighted the growing technology rivalry between the United States and China.
Asia Compliance Checks Could Affect Nvidia Sales
The new buyer restrictions may limit Nvidia’s access to some Asian customers in the near term.
However, stricter screening could also help the company reduce regulatory risks and demonstrate compliance with US export controls.
The development comes as Nvidia navigates rising global demand for AI chips alongside increasingly complex trade restrictions.
