Nvidia GPU crackdown hits China-linked Southeast Asia data centers - Asia Times

The U.S. Bureau of Industry and Security (BIS) issued guidance in May 2026 to close a loophole that allowed Chinese tech firms to purchase banned Nvidia GPUs via subsidiaries in Singapore and Malaysia... Read original →

Washington’s closure of the Southeast Asia GPU loophole triggers a cascading disruption across the AI stack. Technically, Chinese firms lose access to Blackwell-based training infrastructure, forcing reliance on downgraded H20 or Huawei’s Ascend 920—slowing model development cycles. Compliance burdens now approach defense-sector levels, compelling data centers in Singapore and Malaysia to restructure ownership and procurement trails. Strategically, Huawei will accelerate Ascend ecosystem adoption, while Nvidia may pivot to GB300 cloud licensing to preserve revenue. Over the next 12–24 months, de facto bifurcation of the global AI chip market becomes inevitable: China doubles down on domestic 3nm/EUV efforts, but breakthroughs remain distant. Foundries like TSMC (Taiwan, China) face mounting pressure to choose sides, undermining their geopolitical neutrality.