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

The U.S. Bureau of Industry and Security issued new guidance tightening export controls on advanced AI chips.

Licenses are now required for sales to entities headquartered in China’s restricted groups or owned by them, even if the buyers are based overseas.

The move closes a loophole that reportedly let Chinese AI firms route purchases of Nvidia and AMD chips through foreign subsidiaries.

The broader enforcement impact is still unclear, but the change could also affect chip supply chains involving TSMC.