NVDA•NVDA•The U.S. Commerce Department will enforce license requirements for Nvidia’s Rubin and Blackwell processors and H200 AI chips to any entity headquartered in China, even if based abroad, closing a year-old export loophole. Supply-chain sources estimate hundreds of thousands of these advanced chips reached Chinese subsidiaries via Malaysia over the past year.
On May 31, the U.S. Department of Commerce posted guidance enforcing license requirements for advanced AI chips shipped to any entity headquartered in China, regardless of their physical location abroad. This measure closes the loophole created in May 2025 that had allowed exports of high-end processors to Chinese subsidiaries in Malaysia and other locations.
The new directive covers Nvidia’s Rubin and Blackwell processors and its H200 series AI chips, all now subject to export licenses if destined for Chinese firms. Nvidia has obtained U.S. clearance for H200 sales but has yet to receive approvals in China, delaying any deliveries under existing licenses.
Supply-chain experts estimate that hundreds of thousands of Rubin, Blackwell and H200 chips may have been exported to Chinese subsidiaries over the past year via locations like Malaysia. The precise volume of shipments remains uncertain, highlighting gaps in previous enforcement.
By tightening export controls, the guidance could limit Nvidia’s AI revenue from Chinese developers, potentially redirecting demand toward domestic chip suppliers or delaying AI projects. This shift may weigh on Nvidia’s growth projections in its second-largest market.
