Nvidia Boosts Chip Tracking in Southeast Asia to Fight Smuggling

Nvidia Corp. is stepping up monitoring of artificial intelligence (AI) accelerators sold in Southeast Asia in an effort to curb semiconductor smuggling, following criticism that it has not done enough to prevent shipments from illegally reaching Chinese companies, Mackenzie Hawkins reported for Bloomberg News.

Nvidia is expanding its monitoring of AI accelerators in Southeast Asia to help prevent restricted chips from being diverted to unauthorized buyers. [Photo: Nvidia]

The chipmaker now requires customers in the region to enroll in its so-called Fleet Intelligence system to qualify as official Nvidia Cloud Partners (NCPs), according to people familiar with the matter.

The system tracks the locations of AI accelerators owned by participating companies, among other metrics.

The NCP designation is highly sought after by AI cloud computing providers because it offers public recognition and preferred access to chips from a company that plays a central role in the industry.

Nvidia is using the incentive of NCP status to encourage wider adoption of what remains a voluntary chip-tracking program, the people said.

They requested anonymity because the measure has not been publicly announced.

The initiative could give Nvidia greater visibility into the movement of its hardware through Southeast Asia, a region that has long served as a transshipment route for goods subject to trade restrictions.