FILE PHOTO: The U.S. Department of Commerce has asked NVIDIA to investigate how its chips were distributed in China over the past year. |Photo provided by: Reuters
The U.S. Department of Commerce recently asked Nvidia to investigate how its products were distributed in China over the past year, The Information reported Thursday, citing people close to the department.
The company asked major distributors such as Super Microcomputer and Dell Technologies to conduct unannounced inspections of customers in Southeast Asia, the report said. Nvidia’s artificial intelligence chips are built into server products made by Super Micro and Dell.
The Information reported that five different parties involved in smuggling Nvidia chips said they had so far managed to avoid detection in recent inspections by Super Micro.
The report, citing people close to Super Micro, said some of its customers were copying the serial numbers of servers equipped with Nvidia chips purchased from Super Micro and connecting them to other servers they had access to. Ta.
In some cases, smugglers tampered with the serial numbers of the servers’ operating systems, the report said.
An Nvidia spokesperson said: “We insist that our customers and partners strictly comply with all export control regulations. Unauthorized deviations from previously owned products, including resale on the gray market, is a burden rather than a benefit to our business.”
Supermicro, Dell and the Department of Commerce did not immediately respond to Reuters’ requests for comment.
President Joe Biden’s administration is doubling down on its crackdown on chips in China. Last year, the United States expanded its ban on the sale of high-end AI chips to the country.
Still, several Chinese universities and research institutions were procuring these Nvidia chips through resellers, a Reuters review of bidding documents revealed in early 2024.
Earlier this month, the United States restricted semiconductor exports to 140 companies, including semiconductor manufacturing equipment manufacturers.
issued – December 20, 2024 9:36 AM IST
