Nvidia has significantly tightened its sales of advanced artificial intelligence (AI) chips across Asia by introducing a stricter customer approval process aimed at preventing its products from reaching China through third countries. According to a report by the Financial Times, the company has reduced its list of authorised Asian buyers by more than half after implementing a new compliance-based “white list” system.
The move comes as the United States continues to strengthen export controls on advanced AI chips amid growing concerns over technology transfers to Chinese entities.
According to the report, Nvidia has carried out extensive due diligence in countries including Singapore, Malaysia and Japan over the past several months. The company has reportedly reviewed customer operations, business activities and end-use cases before approving purchases of its high-performance AI processors.
More than half of Nvidia’s previous customers, particularly emerging cloud service providers known as neo-cloud companies, reportedly failed the initial compliance review and were removed from the approved buyer list. However, these companies may reapply after addressing the concerns raised during the verification process.
The stricter screening follows increasing pressure from the U.S. government to prevent advanced semiconductor technology from being diverted to Chinese organisations through intermediary countries. In May, the U.S. Department of Commerce issued fresh guidance designed to restrict advanced AI chips from reaching overseas subsidiaries of Chinese companies.
The guidance followed concerns that Nvidia’s latest Blackwell AI processors could have been exported to Chinese-linked entities operating in countries such as Malaysia, despite existing U.S. export restrictions.
The Financial Times reported that Nvidia has expanded its compliance procedures by conducting physical inspections of customer data centres, verifying purchase contracts and interviewing end users before approving AI chip sales. The report also stated that the U.S. Department of Commerce is providing oversight and policy support for the strengthened compliance framework.
Neither Nvidia nor the U.S. Department of Commerce immediately commented on the report.
The tighter controls reflect the growing geopolitical importance of advanced AI chips, which have become central to the global race for artificial intelligence leadership. As governments continue to impose stricter technology export regulations, semiconductor companies are increasingly required to strengthen compliance measures while balancing commercial growth with national security considerations.
Disclaimer: This report has been editorially prepared using publicly available information. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify important information through official sources.
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