In a recent case, the U.S. Department of Justice charged Chuan Geng and Shiwei Yang for allegedly smuggling advanced Nvidia AI chips to China without the proper licences. Between October 2022 and July 2025, they reportedly exported millions of dollars’ worth of Nvidia H100 processing units—chips that power many of today’s AI applications. This development comes amid intensified efforts to curb the unauthorised flow of high-tech semiconductors to China.
Nvidia has always maintained a strong commitment to legal compliance. The company explained that it mainly sells its products to well-known partners, including original equipment manufacturers (OEMs), who help ensure that every sale meets U.S. export control regulations. In doing so, Nvidia makes it very clear that any unauthorised distribution would leave users without the crucial service, support, or updates they expect.
Geng and Yang, operating through ALX Solutions in California, are alleged to have routed their shipments via Malaysia and Singapore – common transshipment hubs – in an effort to mask the chips’ ultimate destination. Investigators uncovered communications discussing ways to skirt U.S. export laws, with payment trails leading back to Hong Kong and China.
This case highlights growing concerns in Washington over the illicit movement of sophisticated microchips into China. With export controls tightened since the Trump administration, both the Department of Commerce and the FBI are keeping a close eye on such activities. For anyone navigating the tech landscape, ensuring rigorous compliance isn’t just about following regulations—it’s about protecting your business and reputation.
