This is John Batchel, speaking with colleague Brendan Weikert about the report in the Financial Times

that the People's Republic of China forbidden to have the high-end Nvidia chips built in TSM land in Taiwan

from machines that are built in Europe, ASML.

The report is that China has been using Malaysia, among other cutouts, to import NVIDIA,

surreptitiously, as Brandon says generously.

This is a black market.

China must have that high end no matter what the embargo.

And Brandon also reports on how they're doing, developing their own high end.

They're not good at it.

Not yet.

Is Brandon?

Much more, than I.

Well, I think that the Financial Times has the story, so they didn't fool anybody, no.

But unfortunately, what are we going to do, stop it?

And are they stockpiling?

Because I have been saying since I initially reported on what China was trying to do,

this would have been now two years ago in the Middle East, trying to access these chips from those entities there,

I have been saying the concern is that they are stockpiling these systems,

and then they're trying to reverse engineer them indigenously. Because right now, the problem is, is that China, they're not completely behind the curve with domestic chip production,

but obviously TSM in Taiwan, you've got Japan, South Korea.

Those are the real hubs of high-end chip development.

China can produce sophisticated chips, but not to the level yet that these other firms in those three countries I just mentioned, Ken.

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