Nvidia spy scandal deepens as US Treasury chief faults government over firm's chip exports - TRT World

The Treasury Secretary's public criticism signals a critical shift from technical containment to institutional dysfunction within the US export control regime. This internal friction destroys the predictability of licensing, directly undermining Nvidia's compliance-based arbitrage model for specialized chips like the H20. Upstream, the allocation logic for advanced packaging capacity is forced to pivot from commercial efficiency to geopolitical security, skyrocketing compliance costs for non-US supply chains. While rivals like AMD and Intel may see short-term gains, they face identical regulatory volatility, preventing them from filling the market void. Over the next 18 months, the dominant trend will be 'compliance fragmentation.' Enterprises will cease relying on single-source US licenses, accelerating the adoption of heterogeneous, multi-vendor compute architectures to hedge against systemic policy execution risks. This is not merely a crisis for Nvidia; it is the explicit manifestation of a broader trust crisis in global semiconductor governance.