TECH - Nvidia's High-End Chips Ended Up In Chinese Hands Despite US Ban: Here's How Beijing Scored Them | Benzinga
Chinese entities have managed to acquire high-end NVIDIA Corp (NASDAQ:NVDA) chips, despite the U.S. imposing a ban on such technology. The chips were obtained through third-party vendors and were embedded in servers made by Super Micro Computer Inc. (NASDAQ:SMCI), Dell Technologies Inc. (NYSE:DELL), and Gigabyte Technology Co Ltd.
What Happened: Despite the U.S. expanding its ban on the sale of such technology to China in November, ten Chinese entities successfully acquired advanced Nvidia chips. These chips were integrated into servers manufactured by Super Micro, Dell, and Gigabyte Technology, Reuters reported reviewing hundreds of tender documents.
The servers contained some of Nvidia’s most advanced chips, as per the tenders fulfilled between Nov. 20 and Feb. 28. The U.S. embargo, which was expanded on Nov. 17, subjected more chips and countries to licensing rules.
The reviewed tender documents showed that the Chinese entities obtained the chips through little-known Chinese retailers. It was unclear whether these retailers used stockpiles acquired before the U.S. tightened chip-export restrictions in November.
Nvidia stated that the tenders specify products that were exported and widely ...