Innosilicon developed 112G and 224G scale-up interconnect related chips and IP for scaling up clusters using UALink 1.0 standard for 800G and 1.6T network.
May 31 (Reuters) - The U.S. Department of Commerce on Sunday moved to close a potential loophole that may have led companies to export the world's most advanced chips - like Nvidia's most sophisticated Blackwell processors - to subsidiaries of Chinese companies located outside China.
The new guidance was posted on the Commerce Department's website on Sunday after a paper about the loophole circulated in Washington, according to people familiar with the matter. The paper, a copy of which was seen by Reuters, says "the floodgates have quietly opened." Dated Friday, the paper does not list any author.
It is unclear how many of the chips have been exported in the year that the Trump administration left the door open. One chip industry source with deep supply-chain knowledge estimated it was in the hundreds of thousands.
The new guidance does not change anything for Nvidia, a company official said, adding that it could not ship the chips because the Commerce Department had clearly imposed a license requirement on Nvidia in a letter.
Former State Department official Chris McGuire, an expert on technology and national security, said in a social media post on Sunday that the loophole allowed the overseas subsidiaries of Chinese companies to buy Nvidia Blackwell chips without a license. "This is a HUGE problem," he said.
"Chinese companies have been buying these chips, very likely at scale," McGuire said.
McGuire said the guidance closes the loophole, but leaves another open. That loophole drops the requirement that Taiwan-based TSMC and other foundries do extra due diligence to ensure the high-end AI chips they are making are not for Chinese front companies. He said that issue was not fixed by the guidance.
A spokesman for TSMC declined comment.



