US Eyes Legal Workarounds as Nvidia AI Chips Face Export Scrutiny

Nvidia’s H200 Chips Destined for China to Face US Security Review: Report

  • NVIDIA’s H200 AI chips destined for China will undergo a security review in the United States before export.
  • The U.S. government plans to retain a 25% share of the chip sales value.
  • Officials are considering legal approaches to ensure the measure does not violate the constitutional ban on export taxes.
  • Chips will be produced mainly in Taiwan, then sent to the U.S. for review and processing before reaching China.

Nvidia’s H200 advanced Artificial Intelligence chips, which the U.S. government recently approved for export to China, will first pass through United States territory for a national security evaluation. This process represents an uncommon step underscoring heightened scrutiny over technology sales between the two countries.

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The chips will primarily be manufactured at facilities in Taiwan. According to a report, after their production, the products will be shipped to the U.S. where a security review will be conducted. In this arrangement, the government will collect 25% of the total sales amount from the exports.

Government officials are working to establish a legal structure that avoids the appearance of an export tax. The U.S. Constitution prohibits federal export taxes, so authorities are seeking alternatives that comply with legal requirements.

These new measures reflect the current push to strengthen oversight of advanced technology transfers related to artificial intelligence. The process aims to balance economic interests with national security concerns, as American companies like Nvidia continue to supply high-performance hardware internationally.

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