8legs: U.s. bureau of industry and security

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US closes loophole that allowed Chinese-owned subsidiaries located outside China to buy AI chips — report claims that hundreds of thousands of advanced AI chips have been acquired through BIS blind spot

The U.S. BIS updated guidance to require licenses for advanced AI chip exports to China-headquartered firms located outside China.
Tom's Hardware reports some Chinese AI firms used overseas subsidiaries to buy chips legally, highlighting a BIS blind spot.
Officials say closing the loophole could prevent China-based firms from indirectly obtaining AI chips via foreign entities.
Analysts note the update could affect demand for Nvidia and AMD AI chips used by Chinese firms through abroad subsidiaries.
The guidance follows BIS actions amid broader debates over export controls and technology access for China.
The article cites a possible link between the loophole and a spike in AI chip shipments observed by Malaysia.
The BIS guidance references licensing rules for exports to entities with a China nexus, even if located abroad.
The report notes uncertainty over the exact number of servers shipped via the loophole.
The BIS update aligns with ongoing scrutiny over US export controls and tech diplomacy with China.

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