US Crackdown on China Hits Nvidia Customers in Singapore, Malaysia, and Japan

The United States’ aggressive campaign to block China’s technological advancement is having a ripple effect on other Asian nations. Nvidia is reportedly reducing its customer base and conducting compliance checks on clients to ensure its advanced chips do not end up in China, impacting businesses in Singapore, Malaysia, and Japan.

According to a Financial Times report citing three sources, the company has increased its due diligence in these countries. The affected customers include neo-cloud providers, though impacted companies can reapply for access. Nvidia did not immediately respond to a request for comment.

The move follows guidance issued in May by the US Department of Commerce aimed at preventing advanced AI chips from reaching Chinese subsidiaries located overseas. The rules specifically highlighted concerns about Nvidia’s Blackwell chips being exported to Chinese companies operating in countries like Malaysia.

Under pressure from the US government, Nvidia is tightening its compliance procedures. The company’s employees are reportedly conducting on-site visits to customer data centres, verifying contracts, and interviewing users as part of the enhanced checks.