Chip Export Curbs Gain Momentum in Congress After Nvidia CEO Scandal

Lawmakers are demanding tighter restrictions on AI chip exports following Nvidia CEO Jensen Huang's affair with a business partner suspected of being a Chinese intelligence source, a push that could cost semiconductor companies billions in revenue. Top Republicans and Democrats hope to include three proposed measures in a stalled defense spending package. The measures would restrict AI chip exports to adversarial nations like China, tighten controls on allied countries such as the Netherlands and Japan to prevent them from sending chip manufacturing equipment to China, and track chips before export to establish their locations. The proposals could hurt companies including Nvidia competitor Advanced Micro Devices and tech giants like Microsoft and OpenAI building overseas data centers. The Commerce Department has investigated since 2024 whether Alice Huang's Singapore-based company Megaspeed diverted Nvidia chips to China, a probe now led by the Justice Department. Democrats winning control of both chambers of Congress last week has given the push new momentum, though industry trade groups warn the measures would undermine U.S. companies and cede global market share to Chinese competitors.