The clampdown comes under pressure from Washington, which is seeking to plug gaps in export controls and dismantle the black market for chips. In March, US prosecutors charged a co-founder of Super Micro Computer and several employees, accused of helping to smuggle $2.5bn of chips to China via a front entity in Southeast Asia, the FT also reported.

The tightening is worsening the shortage of AI chips in China, where demand is surging with the rise of AI agents. Without access to the most advanced manufacturing equipment, domestic output remains insufficient: "All domestic suppliers are out of stock. Even the low-end chips that nobody wanted are gone," a Chinese industry executive told the FT.

https://www.marketscreener.com/news/nvidia-said-to-have-cut-off-half-its-asian-customers-to-curb-fraud-ce7f5edcdf8ef62d