US Tightens Controls on Nvidia Chip Exports to Chinese Entities
The US tightened export controls on Nvidia AI chips, requiring licenses for entities headquartered in China. Existing shipments remain in use, though a previous loophole allowed advanced chips to be exported without licenses for nearly a year.
The US Department of Commerce closed a loophole that had allowed advanced AI chips from NVDA and AMD to reach Chinese firms operating outside China . The opening emerged when Commerce declined to enforce the Biden-era AI Diffusion rule in May 2025, letting Chinese companies acquire chips such as Nvidia's Blackwell without licenses for nearly a year.
New guidance issued May 31 now requires export licenses for advanced semiconductors going to any entity headquartered in China, regardless of where that entity is physically located. The covered list names Nvidia's Blackwell and Rubin families and AMD's MI350x, though existing shipments may remain in use and data centers are not required to stop operating current hardware.
The tightening could pressure a slice of Nvidia's and AMD's China-linked demand and adds fresh uncertainty to an already contentious export-policy backdrop. Investors should watch for company guidance on China revenue exposure and any retaliatory measures from Beijing.
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