{"id":228644,"date":"2026-06-03T10:50:15","date_gmt":"2026-06-03T10:50:15","guid":{"rendered":"https:\/\/teknomers.com\/en\/nvidia-chips-arrive-in-china-a-malaysian-subsidiary-was-all-that-was-needed\/"},"modified":"2026-06-03T10:50:17","modified_gmt":"2026-06-03T10:50:17","slug":"nvidia-chips-arrive-in-china-a-malaysian-subsidiary-was-all-that-was-needed","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/nvidia-chips-arrive-in-china-a-malaysian-subsidiary-was-all-that-was-needed\/","title":{"rendered":"Nvidia Chips Arrive in China: A Malaysian Subsidiary Was All That Was Needed"},"content":{"rendered":"\n
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The US Government has long been wary of Chinese companies and research centers leveraging Nvidia’s most advanced GPUs<\/strong> through intermediaries in Singapore and Malaysia. In 2022, the government took decisive action to ban the sale of cutting-edge AI GPUs produced by Nvidia, AMD, and other American firms to China. This crackdown aimed to curb the potential use of advanced technology by the Chinese military.<\/p>\n

The Ongoing Tension<\/h2>\n

Since the ban was imposed, relations between the US and China have been strained, affecting not just the integrated circuit industry but various sectors reliant on AI chips. While attempting to enforce tighter control, the US Commerce Department faces challenges from parallel import routes that still facilitate the flow of advanced chips to China. Surprisingly, these loopholes were exacerbated during the Trump Administration.<\/p>\n

The Trump Administration\u2019s Policy Reversal<\/h2>\n

In May 2025, the Trump Administration unexpectedly chose to freeze the AI Diffusion rule, a critical export control regulation concerning GPUs designed for AI. Initially approved in the final days of the Biden Administration, this rule established a three-tier system, allowing US allies to access advanced AI chips while completely blocking countries like China, Russia, and Iran.<\/p>\n

Malaysia: A Legal Loophole<\/h2>\n

The suspension of the AI Diffusion rule by the Trump Administration inadvertently created a substantial loophole for Chinese companies to exploit. Previously, selling chips to foreign subsidiaries of Chinese firms required a license from the US Department of Commerce. However, with the rule’s suspension, many Chinese firms have been able to purchase Nvidia’s Blackwell and Rubin GPUs, as well as AMD’s MI350x, from their subsidiaries in Malaysia without restriction.<\/p>\n

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The Trump Administration unintentionally created a legal loophole taken advantage of by many Chinese companies.<\/p>\n<\/p><\/div>\n<\/div>\n

New Guidelines and Unresolved Issues<\/h2>\n

Recently, just 48 hours ago, the Office of Industry and Security within the US Department of Commerce announced new guidelines aimed at closing the loophole. These guidelines now demand compliance with licensing requirements for advanced chips intended for entities based in China, regardless of their location outside the country. However, this update does not obligate data centers to cease using chips already acquired. As technology expert Chris McGuire highlighted, this measure “closes one loophole but leaves another open.”<\/p>\n

While McGuire did not identify the second loophole, industry experts point to the continued access that Chinese subsidiaries have to manufacturing capabilities through TSMC, a Taiwanese semiconductor giant. This connection remains under-regulated by the new guidelines, implying that alternative pathways still exist for Chinese firms to obtain advanced chips.<\/p>\n

As the chip war between the US and China escalates, it becomes clear that navigating these intricate regulations will be challenging for all involved. The international tech landscape is poised for further developments as both nations grapple with safeguarding their technological advancements against misuse.<\/p>\n

Image | Nvidia<\/a><\/p>\n

More information | SCMP<\/a><\/p>\n

In Xataka | We can forget about AI without hallucinations for now. Nvidia CEO explains why<\/p>\n<\/div>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The US Government has long been wary of Chinese companies and research centers leveraging Nvidia’s most advanced GPUs through intermediaries in Singapore and Malaysia. In 2022, the government took decisive action to ban the sale of cutting-edge AI GPUs produced by Nvidia, AMD, and other American firms to China. This crackdown aimed to curb the […]<\/p>\n","protected":false},"author":1,"featured_media":228645,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[9412,2397,10052,9529,9872,20230,19199],"class_list":["post-228644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-arrive","tag-china","tag-chips","tag-malaysian","tag-needed","tag-nvidia","tag-subsidiary"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/228644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=228644"}],"version-history":[{"count":1,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/228644\/revisions"}],"predecessor-version":[{"id":228646,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/228644\/revisions\/228646"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/228645"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=228644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=228644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=228644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}