Two charged with illegal shipment of Nvidia chips

Two Chinese individuals face serious charges for exporting advanced AI chips from the U.S. to China.

U.S. charges two Chinese nationals for illegally exporting Nvidia chips

Chuan Geng and Shiwei Yang, both 28, have been charged for exporting Nvidia AI chips unlawfully from California to China. The shipments, valued in the tens of millions, occurred between October 2022 and July 2025 without the necessary licenses. Nvidia’s H100 chips were among those exported. This case reflects ongoing U.S. efforts to enforce export controls, particularly relating to high-tech chips, to limit China’s access to advanced semiconductor technology. The Department of Justice has identified ALX Solutions, the company linked to Geng and Yang, as the source of these shipments, revealing a pattern of avoiding regulations by routing shipments through Malaysia and Singapore. The investigation, still ongoing, highlights concerns over U.S. chip smuggling, with penalties for violating export control laws steep, including possible prison time.

This case spotlights the tightening grip of U.S. export controls in response to national security concerns surrounding China’s access to advanced technology. The illegal export of AI chips, particularly those from Nvidia, signifies not just economic implications, but escalates the technology race between the two nations. As American chipmakers focus on compliance and transparency, this incident may prompt further regulatory scrutiny and cooperation among nations including Malaysia, which has begun requiring additional permits for U.S. AI chips. Stakeholders are increasingly aware that unguided trade in sensitive technology can come with serious repercussions.

Highlights

The implications of this case could reverberate through international trade relations and tech security policies.