Nvidia Asian Buyers Major Reshuffle: Over Half Fail Compliance Reviews, Whitelist System Reshapes Global Computing Power Distribution Landscape

TradingKey - On July 14, according to a report by the Financial Times, US chip giant Nvidia ( NVDA) has cut the number of Asian customers authorized to purchase its artificial intelligence chips by more than half, establishing a new customer "whitelist" system and strengthening compliance review mechanisms to prevent advanced chips from flowing into the Chinese market through third-party channels.

Nvidia's newly established "whitelist" system for Asian buyers only allows customers on the list to purchase its AI chip products, and has significantly strengthened due diligence efforts in key regions such as Singapore, Malaysia, and Japan.

It is understood that more than half of its existing Asian customers failed the new compliance reviews and have been temporarily excluded from the purchasing list, with emerging cloud service providers being the most significantly impacted.

Nvidia's review process is extremely rigorous, with employees conducting on-site visits to customers' data centers, verifying contract terms, and interviewing end-users.

Companies that fail the review can reapply for qualification by improving compliance files and providing supplementary customer information. The audit will focus on key factors such as the customer's ownership structure, intended end-users, purchase contract terms, and data center deployment locations.

This move is a product of the US government's tightening controls on chip exports to China, and also reflects the current tensions in the global technology supply chain.

Compliance Tightening Under Multiple Pressures

Nvidia's move to tighten access thresholds for Asian customers is driven by direct pressure from the US government and the recently exposed chip-smuggling cases.

In March this year, US prosecutors filed charges against a co-founder and two employees of Supermicro, accusing them of allegedly smuggling Nvidia chips worth approximately $2.5 billion to mainland China via Taiwan through Southeast Asian intermediaries. This case highlights existing loopholes in the export control system and has prompted the US government to further strengthen control measures.

The US Department of Commerce issued new guidance in May this year, requiring the prevention of advanced AI chips from flowing to overseas subsidiaries of Chinese firms, with particular concern that Nvidia's latest Blackwell processors could enter the Chinese market through third-party countries such as Malaysia.

The Financial Times reported that Nvidia tightened its compliance procedures under direct pressure from Washington, and the US Department of Commerce was also involved in the process, providing regulatory and political support.

China Chip Demand Is Robust

Despite escalating US chip export controls against China, demand for Nvidia's high-end AI chips remains strong in the Chinese market. The Financial Times reported last month that the price of Nvidia's flagship DGX B300 server on the Chinese mainland black market has doubled within six months, soaring from approximately RMB 4 million to RMB 8 million.

To crack down on chip smuggling, the governments of Taiwan and Malaysia have also recently stepped up relevant inspection and enforcement actions, making it even more difficult for Chinese black market traders to secure supplies.

Despite escalating US chip export controls against China, demand for Nvidia's high-end AI chips remains strong in the Chinese market. The Financial Times reported last month that the price of Nvidia's flagship DGX B300 server on the Chinese mainland black market has doubled within six months, soaring from approximately RMB 4 million to RMB 8 million.

To crack down on chip smuggling, the governments of Taiwan and Malaysia have also recently stepped up relevant inspection and enforcement actions, making it even more difficult for Chinese black market traders to secure supplies.

For Nvidia, tightening its list of Asian customers is a difficult balance between compliance requirements and market expansion. Although this move may limit the company's market expansion space in the short term, Nvidia emphasized that it will strictly comply with all applicable export control laws and require its partners to also adhere to relevant regulations.

As the global trade environment continues to change, how Nvidia maintains its market competitive advantage while meeting regulatory requirements will remain a focus of continuous industry attention.

Currently, Nvidia has not yet made an official response regarding this matter.