Nvidia Cuts Asian AI Chip Buyer List in Half Amid China Export Crackdown

Nvidia has significantly reduced the number of Asian customers authorized to purchase its AI chips, cutting its approved buyer list by more than half after rolling out tougher compliance checks. The new screening process is designed to prevent Nvidia’s advanced chips from reaching China through indirect channels, according to a Financial Times report citing people familiar with the matter.

Neo-Cloud Providers Among Those Excluded

Over the past several months, Nvidia has increased scrutiny of buyers in Singapore, Malaysia, and Japan. More than half of the company’s previous customers, particularly neo-cloud providers, failed the initial review and were removed from the approved list. These companies reportedly still have the option to reapply for access after making changes to address compliance concerns.

Move Comes Amid Broader US Pressure on Chip Exports

The tightened review process aligns with ongoing efforts by the Trump administration to stop advanced American chip technology from reaching Chinese entities through third countries. In May, the U.S. Commerce Department issued guidance specifically aimed at limiting the flow of high-performance AI chips to overseas subsidiaries linked to Chinese companies, amid concerns that Nvidia’s advanced Blackwell processors may have ended up with Chinese affiliated firms operating in countries like Malaysia, despite existing export restrictions.

Nvidia Strengthens Verification Process

According to the report, Nvidia has responded to pressure from Washington by significantly increasing its due diligence procedures. Company staff are now visiting customer data centers directly, verifying contracts, and interviewing end users as part of a more rigorous vetting process. The U.S. Department of Commerce is also said to be involved in supporting and overseeing these efforts.

Companies Have Not Confirmed the Details

Neither Nvidia nor the Commerce Department had responded to requests for comment at the time of reporting, and the details of the review process have not been independently confirmed beyond the original report.