Nvidia (NVDA, Financials), the chipmaker best known for graphics processors and AI hardware, has reportedly tightened sales of its advanced chips across parts of Asia.
The company introduced a new approval list after stepping up compliance checks in Singapore, Malaysia and Japan, according to the Financial Times. More than half of its previous customers were removed, with smaller cloud providers among those most affected.
Nvidia is now taking a closer look at who owns each customer, where the chips will be used and which companies will ultimately have access to them. Purchase contracts and data center plans are also part of the review.
Customers that do not pass the first screening can try again after providing more detailed records. The changes come as U.S. officials increase pressure on chipmakers to prevent advanced processors from reaching China through third countries.
Nvidia said it follows all export-control rules and expects its partners to do the same. For investors, the tighter process may slow some overseas sales, but it also lowers the risk of regulatory trouble. The next thing to watch is whether the new screening affects Nvidia's growth in Asia.