Nvidia is facing renewed scrutiny over whether its chips could be diverted to China, as US lawmakers seek information about the company’s safeguards against espionage and chip smuggling. Nvidia said its regional cloud customers receive only routine business information, while an internal review of Singapore-based MegaSpeed found no evidence that Nvidia chips were being redirected to China.
Nvidia outlines security measures
“Our regional cloud customers receive regular business information that is not sensitive NVIDIA trade secrets and do not receive any information related to national security,” Nvidia said.
Lawmakers want Nvidia’s chief executive to explain the security protocols the company uses to guard against “espionage by foreign adversaries.” Nvidia said its chief executive was accompanied by a “high-quality security team.”
The New York Times reported that Hwang had not received a “defense briefing.” Such briefings typically give companies intelligence about potential espionage targets so they can be warned about possible threats, although that is not always the case.
Nvidia said it is confident the US government will notify the company if it believes an individual poses a threat to US industry. The company also said it receives frequent government updates about people considered to be of concern.
Review of Singapore-based MegaSpeed
US authorities had previously scrutinized MegaSpeed, which was founded in 2023 as a spinoff from a Chinese gaming company, over possible chip smuggling. The company was not indicted.
Aware of the US concerns, Nvidia conducted an unannounced inspection of MegaSpeed in Singapore. An internal investigation found no evidence that Nvidia chips were being diverted to China, according to a person familiar with the matter.
Supply chain faces greater scrutiny
Nvidia’s supply chain has come under increased scrutiny as chip smuggling has grown amid US export restrictions. Earlier this year, Wally Liaw, co-founder of Supermicro, one of Nvidia’s major supply chain partners, was arrested in the United States and charged with smuggling Nvidia chips into China. Liaw denies any wrongdoing and maintains his innocence.
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Source: arstechnica.com