According to an article posted on The Information on Thursday, the U.S. Department of Commerce has asked Nvidia (NVDA, Financial) to look at how its products were illegally imported to China over the past year.
The government has also contacted distributors, including Dell Technologies (DELL, Financial) and Super Micro Computer (SMCI, Financial), to conduct customer spot checks throughout Southeast Asia in order to track possible supply chain weaknesses. Moreover, the report highlights initiatives to enforce U.S. export restrictions meant to stop the flow of sophisticated semiconductor technologies to China, a main focus of continuous geopolitical and trade conflicts.
Neither Nvidia nor the Department of Commerce have officially responded to the report. The examination draws attention to the difficulties businesses have keeping compliance with international trade rules, especially in view of the increased focus on technology supply chains.
Pre-market trading for Nvidia shares was somewhat down after the news.
