Inspur Group uses U.S. subsidiary to bypass semiconductor sanctions

Inspur Group, a major Chinese technology firm placed on a U.S. entity list in March 2023, has reportedly utilized a Silicon Valley subsidiary named Aivres to bypass American export restrictions on advanced semiconductors.

Investigations into Aivres suggest the subsidiary acts as a conduit for the Chinese parent company to secure high-end computing power necessary for its growing artificial intelligence industry. Trade records indicate that between April 2024 and February 2026, Aivres exported at least $5.6 billion in advanced technology from the U.S. to Southeast Asia. This includes over $3 billion worth of equipment featuring Nvidia’s advanced Blackwell chips.

These technologies are reportedly being sent to data centers and tech firms in Southeast Asia that serve major Chinese companies, including Alibaba and ByteDance. Additionally, technical equipment has flowed through a network of subsidiaries to manufacturers in Malaysia and Indonesia, which then supply high-performance computers to Chinese state-owned enterprises and universities.

While U.S. law prohibits the sale of restricted technology to blacklisted entities, loopholes exist regarding Chinese companies accessing data centers located in third-party countries. Federal officials have reportedly begun investigating Aivres’s operations, though the progress of these inquiries remains unclear.