Regulatory enforcement actions and criminal investigations into Nvidia chip smuggling create compliance risks and reputational damage for companies in the supply chain

"Republican Representative Bill Huizenga sharply criticized Kessler for guidance the Commerce Department issued on May 31 about a potential loophole that may have allowed subsidiaries of Chinese companies outside China to obtain Nvidia Blackwell chips, which are even more sophisticated than H200s."

"Taiwan said Thursday prosecutors had detained two employees of US company Super Micro Computer after expanding a probe into the alleged smuggling of Nvidia AI chips to China."