China Ramps Up Inspection on Nvidia's AI Chips Amidst Trade Frictions with U.S.

China has ramped up its inspection of U.S. chips, notably those from Nvidia, in a move to bolster its domestic semiconductor industry, according to a Financial Times report. Stringent checks by customs officials at major ports are focusing on Nvidia's advanced AI processors that align with U.S. export controls.

The inspections, initially aimed at Nvidia's H20 and RTX Pro 6000D models, have expanded to include all advanced semiconductor products that breach U.S. export regulations. This escalation underscores the tension in U.S.-China trade relations, particularly in the tech sector.

Allegations of $1 billion worth of smuggled Nvidia AI chips entering China over a three-month period have not been independently verified, but reflect underlying challenges. Despite local advances, Chinese tech experts acknowledge Nvidia chips' superior performance compared to domestic alternatives.