Silicon shadows: inside the black market for AI chips | FT Film
NOBODY TALKING: Export controls are failing. While regulators focus on legal loopholes, a black market for AI chips is already moving billions to China.
Why it matters
US semiconductor export restrictions—a cornerstone of AI competitiveness strategy—are being systematically circumvented by illegal supply chains. This directly undermines geopolitical AI dominance assumptions and reshapes risk calculus for chip companies, cloud providers, and investors betting on US technical superiority.
The key facts
5 to knowBlack market for advanced AI semiconductors operating despite US export controls
Primary destination: China
Financial scope: billions in circumvented shipments (exact figures in FT Film)
Regulatory failure: legal controls insufficient to prevent diversion
Geopolitical implication: US AI competitiveness strategy compromised by enforcement gaps
Go to the source
Financial Times Technologyft.com
Publisher excerpt: As the US tightens export controls, a thriving black market is helping advanced AI semiconductors reach China