Nvidia faces increased chip export controls amid Huang scandal- The Information

The Trump administration may allow new export controls on advanced Nvidia AI chips sold to China, The Information reported on Monday, citing people familiar with the matter.

White House officials provided feedback to Congressional staff in late October on export control measures being considered for inclusion in the National Defense Authorization Act, an annual policy legislation package. The Information repor said the administration’s engagement suggests it may not block the measures, as it has previously.

Staff at the U.S. Department of Commerce have recently pushed to establish rules in two areas of export control policy, current and former Commerce officials said. The proposed rules would cover tooling for lithography machines, which are essential components in semiconductor manufacturing, and restrictions to prevent Chinese companies from remotely accessing advanced AI chips made by companies such as Nvidia, the report said.

Commerce Department leadership has not completed efforts to create new export control policies in the past and may delay action again.

The report comes as Nvidia grapples with a growing scandal involving CEO Jensen Huang’s relationship with a suspected Chinese spy. Shares of the company slid over 4% on Monday after Huang admitted to the affair, and the Nvidia board said it will probe the issue.