Congress scrutinises US chip policy after Nvidia chief’s departure

Senator Ron Wyden and Representative Richard Neal, the senior Democrats on the Senate Finance and House Ways and Means committees, announced an investigation on 12 November into the approval and taxation of Nvidia chip sales to Chinese companies. They asked Commerce Secretary Howard Lutnick to preserve records, including those concerning export licences and contacts with Nvidia and its former chief executive, Jensen Huang.

Their inquiry is separate from a request by three Republican House committee chairs for Huang to answer questions about his contacts with Alice Huang, a former executive at Nvidia customer Megaspeed, and the chipmaker’s security procedures.

Jensen Huang resigned as Nvidia’s chief executive, president and board member on 12 November. The company did not give a reason for his departure. Chief financial officer Colette Kress has taken over as interim chief executive while the board searches for a permanent successor.

The BBC reported that US intelligence suspects Alice Huang of links to Chinese intelligence. She is not related to Jensen Huang, whose reported relationship with her has prompted scrutiny. Beijing has rejected the allegation. On 8 November, Nvidia’s board announced an independent investigation and said it had no reason at that point to believe national security or company secrets had been compromised.

The Democrats’ inquiry reaches beyond Megaspeed to the administration’s vetting of Chinese chip buyers. Washington has restricted exports of advanced processors to China, although President Donald Trump allowed Nvidia to resume sales of certain chips in return for a share of the revenue. Its most advanced Blackwell chips remain off limits.

The New York Times reported that Nvidia’s general counsel contacted Commerce Department investigators who were examining suspected chip smuggling by Megaspeed, invoking a senior Trump appointee, according to the BBC. The department allegedly froze its investigation and referred the case to the Justice Department. Megaspeed chief executive Tan Yong Pong said the company takes its US export-control obligations seriously and had cooperated with Commerce Department inspections.

The congressional inquiries have not established espionage, unauthorised chip diversion or improper influence over government decisions. The White House did not respond to the BBC’s request for comment, but told the New York Post that Trump had complete confidence in Lutnick.

Huang’s team told Republican lawmakers he planned to cooperate, the BBC reported. The three committee chairs subsequently proposed a closed-door, transcribed interview on 1 December and requested written confirmation by 8pm Eastern time on 13 November, saying they would otherwise issue a subpoena. It is not known whether Huang has accepted that date.