Sen. Tom Cotton, R-Ark., urged the Commerce Department this week to investigate allegations that Singapore-based data center company Megaspeed helped Chinese firms evade U.S. export controls on sensitive Nvidia chips.
President Donald Trump, on his way to Israel, softened his message on tariffs on Chinese goods. When asked if imposing those tariffs was still the plan, he said, "Right now it is. Let's see what happens. November 1st is an eternity."
The Dutch government’s seizure of semiconductor firm Nexperia came amid U.S. pressure for the Netherlands to intervene in the company’s affairs, court records show. The U.S., in conversation with the Netherlands, cited the firm’s Chinese ownership and the fact that it was set to soon be captured by Entity List restrictions, including those under the Bureau of Industry and Security’s new 50% rule.
The Senate approved by voice vote late on Oct. 9 an amendment to the FY 2026 National Defense Authorization Act (NDAA) that would restrict U.S. outbound investment in China.
The Commerce Department is investigating Singapore-based data center company Megaspeed for potentially helping Chinese companies evade U.S. export controls on sensitive Nvidia chips, The New York Times reported last week. Megaspeed is reportedly poised to buy $2 billion of Nvidia AI technology over the next year, and the Commerce probe is looking into whether it has been indirectly funneling some of those chips to China, including to data centers in Malaysia and Indonesia that appear to be remotely serving Chinese customers. "U.S. officials have also been scrutinizing whether Megaspeed diverted some of those chips on to China, in violation of U.S. law," the report said.
The U.S. should impose new chip-related export controls on China in response to Beijing’s new rules last week that will restrict overseas exports if they contain certain levels of Chinese-origin material (see 2510090021), a former senior U.S. national security official said.
Tokyo Electron Ltd. (TEL) is reviewing a recent report by the House Select Committee on China that calls for reducing exports of chipmaking equipment to China (see 2510070029), a company spokesperson said in a statement late Oct. 7. “TEL is fully aware of the importance of semiconductors to national security and complies with all applicable export control regulations that govern our business.” The report said existing U.S. and allied export controls have failed to stop China from buying “vast quantities of highly sophisticated” semiconductor manufacturing equipment it could use to advance its chipmaking, military and surveillance capabilities.
Beijing this week announced a host of new export license requirements for shipments of rare earths, superhard materials and related equipment, including new rules to restrict overseas exports if they contain certain levels of Chinese-origin materials. The country’s Ministry of Commerce also added more than a dozen companies to its Unreliable Entity List for arms sales to Taiwan or for other actions that it said hurt Chinese companies or the country’s “sovereignty” or security.
U.S. and allied export controls have failed to stop China from buying “vast quantities of highly sophisticated” semiconductor manufacturing equipment (SME) it could use to advance its chipmaking capabilities and bolster its military and surveillance apparatus, the House Select Committee on China said in a new report Oct. 7.
Export controls are likely to continue to be on the negotiating table during upcoming U.S.-China trade talks, panelists said this week.