US charges Chinese nationals with Nvidia chips export breach
The Trump administration is exploring ways to include enhanced location-tracking in AI chips to help with export control enforcement
[WASHINGTON] Two Chinese nationals were arrested this week on charges that they sent tens of millions of US dollars worth of advanced AI chips made by Nvidia to China in violation of US export restrictions, according to authorities.
The defendants used a company based in El Monte, California, to export sensitive technology, including graphics processing units, used in artificial intelligence (AI), without obtaining the necessary government licenses, the Justice Department said on Tuesday (Aug 5).
According to a criminal complaint provided by the agency, the two individuals shipped Nvidia-designed chips, including the company’s H100 AI accelerators, which are the basis for computers used to create and run AI software. Such chips require official approval for sales to certain countries.
The accused were identified by authorities as Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte. They have been charged with violating the Export Control Reform Act and could face up to 20 years in prison, according to the Justice Department.
Lawyers for the Geng and Yang could not be immediately located for comment. Spokespeople for Nvidia did not immediately respond to a request for comment.
Over the past several years, the US has steadily tightened restrictions on exports of semiconductors and chipmaking equipment to keep China from gaining ground in the race for AI dominance. The Trump administration is exploring ways to include enhanced location-tracking in AI chips to help with export control enforcement.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Up until being superseded earlier this year by a new line of products from Santa Clara, California-based Nvidia, the H100s were considered the most capable such processors. Their export to China and other countries, which the US has deemed a threat to national security, requires licenses from the Commerce Department which are not usually given.
Geng and Yang operated a company called ALX Solutions that was founded in 2022, shortly after the US Commerce Department began requiring licenses to sell such chips to overseas buyers, the Justice Department said.
Authorities said that they searched the ALX Solutions office and seized phones belonging to Geng and Yang and found evidence of communications about shipping chips covered by export controls to China through Malaysia in violation of US restrictions.
Yang was also accused of overstaying her visa, according to the Justice Department. Geng is a legal permanent resident, authorities said. A federal judge in Los Angeles on Monday ordered Geng released on a US$250,000 bond and scheduled a detention hearing for Yang on Aug 12. The court did not take any pleas in the case.
The Commerce Department’s Bureau of Industry and Security is assisting the probe, along with the Federal Bureau of Investigation. BLOOMBERG
Share with us your feedback on BT's products and services
