US Commerce Department closes loophole on Nvidia chip exports to China - Crypto Briefing

The U.S. Commerce Department closed a loophole in semiconductor export controls on May 31, 2026, preventing Chinese companies from circumventing restrictions by purchasing advanced AI chips through ov... Read original →

The U.S. Commerce Department’s closure of the overseas subsidiary loophole marks a strategic shift from controlling chip delivery locations to scrutinizing corporate ownership. Technically, China’s AI infrastructure will stall in migrating to Blackwell or MI350x-class systems, forced instead into throttled SKUs like H20 or domestic 7nm alternatives—slowing large model development. Compliance burdens for NVIDIA and AMD surge as they must now audit ultimate beneficial ownership across Southeast Asia, risking sales delays from over-cautious screening. Competitively, Huawei Ascend and Cambricon gain runway in China’s training market, while Samsung and SK Hynix expand HBM dominance. Over the next 12–24 months, expect Chinese firms to aggressively adopt chiplet designs and non-EUV processes, while U.S. allies like the Netherlands may adopt similar ‘ownership-based’ controls—cementing a bifurcated, bloc-aligned semiconductor supply chain.