Suspects allegedly circumvented export license requirements by shipping via Singapore and Malaysia
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Image: Nvidia
Two Chinese nationals have been arrested and charged by the US Department of Justice for illegally exporting millions of dollars’ worth of advanced artificial intelligence chips, including Nvidia H100 processors, to China. The defendants, Chuan Geng and Shiwei Yang, are alleged to have circumvented export license requirements between October 2022 and July 2025.
Nvidia emphasised that it aims to comply with US export regulations and that it primarily sells its products through established partners who ensure compliance with these rules. The company also stressed that any seized chips would be stripped of support and updates.
ALX Solutions, the California-based company owned by Geng and Yang, was founded shortly after the implementation of US chip controls. A search of ALX Solutions’ offices uncovered incriminating communications about attempts to circumvent export laws by routing sensitive chips through Malaysia.
The DoJ investigation revealed that ALX Solutions had made more than 20 shipments to shipping companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods destined for China. Moreover, payments came from entities in Hong Kong and China, not from the supposed recipients of the exported goods.
Geng and Yang have been charged under the Export Control Reform Act, which carries a maximum sentence of 20 years in prison. Yang was also found to be in the United States illegally. The case underscores Washington’s growing concern about the smuggling of advanced microprocessors to China. According to a recent report, more than $1 billion (€862 million) worth of Nvidia chips have been smuggled into China, despite tighter export controls.
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