In the United States, two Chinese citizens, Chuan Gen and Shiwei Yang, were arrested in the state of California for illegally exporting artificial intelligence microprocessors to China, including advanced NVIDIA H100 chips, with a total value of tens of millions of dollars. About this informs CNBC with reference to data from the US Department of Justice.
According to the investigation materials, in the period from October 2022 to July 2025, the suspects exported modern processors without proper export licenses. The H100 is one of NVIDIA’s most powerful AI chips. From 2022, its export to China is limited by the US government in order to restrain the technological development of the PRC in the field of high technology.
The investigation established that the company ALX Solutions, through which the deliveries were made, was established shortly after the restrictions were introduced. During the searches, the law enforcement officers found an email that contained plans to bypass export controls — in particular, it was about sending chips through Malaysia. In December 2024, the company made more than 20 shipments to Singapore and Malaysia, which are often used as transit points for illegal export of technology. The payment for the chips was not sent by official buyers, but by firms from Hong Kong and mainland China.
The case is under investigation by the FBI and the US Bureau of Industry and Security. Chuan Geng and Shiwei Yang are charged with violating the Export Control Reform Act, which could carry up to 20 years in prison. In addition, it was established that Shiwei Yan was in the US illegally after her visa expired.
The smuggling of high-tech microcircuits, particularly for artificial intelligence, has become a serious problem for the US government. More than $1 billion worth of NVIDIA chips were smuggled into China in early 2025 after the Donald Trump administration tightened export controls. After pressure from Washington, Malaysia announced the introduction of mandatory import permits for advanced AI processors. NVIDIA emphasized that data centers built on the basis of contraband chips are not supported by the manufacturer and are strategically unprofitable.
