Nvidia Chips Exported To China Face U.S. Security Review In Complex Supply Chain

Benzinga

Nvidia’s H200 chips approved for China will pass through a U.S. national-security review before export, highlighting the unprecedented complexity of the deal. The U.S. receives a 25% revenue share while trying to prevent diversion, as DOJ charges emerged the same day over trafficking controlled Nvidia chips.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03NVIDIA's H200 chips allowed for export to China will undergo a U.S. national security review

00:08before shipment under a complex supply chain, according to administration officials,

00:13according to the Wall Street Journal. The Trump administration faces national security pressure

00:18after approving controversial NVIDIA chip sales to China. The Taiwan-made H200 chips

00:24will be routed through the U.S. for a security review before being exported to China.

00:30Experts said the complex supply chain and unusual security review

00:33underscore the unprecedented nature of the agreement. The U.S. is set to receive a 25%

00:39cut from sales, but must structure the deal carefully to avoid violating the Constitution's

00:44ban on export taxes. Trump said only approved buyers would receive the AI chips,

00:50though past smuggling and diversion have made such limits difficult to enforce.

00:54On the same day, the Justice Department charged two businessmen

00:58with trafficking export-controlled NVIDIA chips, including 200 units to China and other

01:03countries. For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended