Singapore investigates Nvidia chip smuggling case! It is reported that servers are transshipped from Malaysia to China, involving violation of US sanctions.

The Singapore government is investigating whether servers produced by Dell (Dell) and Super Micro (Super Micro) are equipped with Nvidia (Nvidia) chips and transported to China through Malaysia, suspected of violating US sanctions.

Nvidia chips may flow to China through Singaporean intermediaries

According to Bloomberg, Singapore's Minister of Justice Shanmugan (K. Shanmugam) said on 3/4 that authorities had arrested several suspects accused of concealing the true identities of the end users of the servers and transporting them from Singapore to Malaysia. Authorities are tracking whether the devices are moving further into other countries.

The server is being shipped to Malaysia, and it remains to be clarified whether it will ultimately flow to China.

The Singaporean government is currently working with Malaysia and the United States to track the final destination of these servers. Shang Mogan said: 'The current issue is whether Malaysia is just a transit point? Are these equipment being shipped from Malaysia to other countries again? We are currently unable to confirm fully.'

Preliminary investigations indicate that these servers may contain Huida chips, meaning they may be subject to U.S. export controls. However, Shanmugen emphasized: "We are still evaluating whether these servers really contain Huida chips."

Dell, AMD, and NVIDIA emphasize compliance with trade norms

Regarding this investigation, the responses from various companies are as follows:

Nvidia refused to comment on the matter.

Super Micro (Super Micro) has not yet responded to media inquiries.

Dell (Dell) emphasized: "The company strictly adheres to trade practices and all orders are reviewed internally. If we find that the customer is not complying with the regulations, we will take appropriate action immediately, including terminating the partnership."

At the same time, some foreign media pointed out that Chinese buyers are bypassing US export controls through neighboring countries such as Singapore and Malaysia to buy the latest Huida AI chips. Huida responded: "We are investigating the matter, but the AI chips purchased through this channel cannot form a fully operational system."

The US expands regulation to prevent Hyda chips from flowing into China

In recent years, the US government has been continuously strengthening restrictions on China's access to advanced chips, fearing the development of China's AI military applications. The US Department of Commerce recently expanded restrictions on semiconductor exports, covering regions extending to Southeast Asia and the Middle East, to prevent chips from flowing into China through third parties.

Currently, the US government is investigating whether the Chinese AI company DeepSeek has obtained Nvidia chips through a Singaporean intermediary, and has stated that it will take "very tough" countermeasures.

The Singapore government emphasized that this investigation was not at the request of the United States, but was launched by the Singapore police following a report by an anonymous individual regarding fraud. Shanmugam emphasized that this case is not directly related to U.S. export controls, but the investigation results may affect U.S. regulatory policies on semiconductor trade in the Southeast Asia region.

Will Singapore become the key battleground of the US-China tech war

The Singapore government has always maintained the role of a 'neutral trading hub,' but this investigation may make it play a more sensitive role in the semiconductor supply chain in the US-China tech war.

Some experts pointed out that if the investigation confirms that Nvidia chips flow into China through Singapore, the United States may further tighten its export controls on Singapore and the Southeast Asian region, affecting the technology supply chain in the region.

Nevertheless, the Singapore government emphasizes that although less than 1% of NVIDIA chips are directly imported into Singapore, purchases from Singapore buyers account for over 20% of NVIDIA's global sales. This means that Singapore still plays a significant role in the global AI chip market, and future policy changes are worth watching.

(DeepSeek cannot just spend 6 million euros! AI encryption czar analyzes the source of gold behind: China uses Singapore to obtain Nvidia chips)

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