High-Profile Arrests Over Unlicensed Chip Exports
U.S. authorities have arrested two Chinese nationals in connection with an alleged illegal scheme involving Nvidia chip exports to China. The U.S. Department of Justice (DOJ) stated that the accused individuals, identified as Chuan Geng and Shiwei Yang, coordinated unlawful shipments of advanced Nvidia AI chips worth millions of dollars over a period of three years.
ALX Solutions Implicated in Nvidia Chip Export Violations
The DOJ identified a California-based company, ALX Solutions, as the firm responsible for orchestrating the exports. Federal authorities accuse Geng and Yang of running a company that bypassed export license requirements to ship restricted chips overseas. These included Nvidia’s cutting-edge H100 and RTX 4090 GPUs—chips that are at the heart of U.S. efforts to limit China’s access to advanced computing hardware.
Nvidia Chip Exports Hidden Through Foreign Transit Hubs
According to court filings, the shipments often passed through Singapore and Malaysia—two nations commonly used as transit hubs to obscure the true destinations of sensitive technologies. Firms based in China and Hong Kong made the payments, suggesting that mainland China was the final destination for the goods, despite shipments passing through other countries.
One notable transaction included a $1 million payment from a Chinese company in January 2024. U.S. officials say this supports the allegation that ALX Solutions was actively working to circumvent restrictions by using intermediaries and shell firms.
False Declarations and Dubious Recipients
In one instance, ALX Solutions reportedly stated that it intended to ship an Nvidia chip order worth $28.4 million to a customer in Singapore.5230. However, U.S. export control officers found that the recipient company did not exist at the stated address. This raised suspicions that the chips were instead rerouted to unauthorized end users.
Company Structure and Background of Defendants
ALX Solutions, which lacks a public-facing website, is described as having a small team. Geng allegedly managed the company’s financial operations, while Yang served as company secretary. Geng is a lawful U.S. permanent resident, while Yang reportedly remained in the country despite overstaying her visa. Nvidia chip exports.
A third executive, believed to be the company’s CEO, was mentioned in the DOJ filings but not named. All three were said to have full control over decisions related to business operations and international shipments.
Customs Interception and Legal Fallout
One major turning point in the investigation came in December 2024 when U.S. customs officials intercepted a shipment that included Nvidia H100 and RTX 4090 chips. Authorities confirmed that no export license had been obtained for the shipment, strengthening the case against the individuals involved.
The defendants were taken into custody last week—Yang was arrested on Saturday, while Geng turned himself in shortly after. Both have since appeared in federal court in Los Angeles and face charges under U.S. export control laws. If convicted, they could face prison sentences of up to 20 years.
Industry Reactions and Compliance Commitments
Nvidia responded to the charges by reaffirming its commitment to strict compliance with U.S. export laws. A company spokesperson emphasized that any attempt to smuggle or redirect its products without authorization is “a nonstarter.” Furthermore, they stated that diverted products would be ineligible for customer support, software updates, or technical service.
Super Micro Computer, which reportedly sold Nvidia chips to ALX Solutions, also reiterated its dedication to following U.S. regulations. While the company declined to discuss specifics due to the ongoing legal proceedings, it pledged to cooperate fully with the relevant authorities.
Cloud Computing Ties and Suspicious Activity
While ALX Solutions itself does not have a known online presence, investigators found a website for ALX-Cloud, a business providing cloud computing services that appears to operate as a subsidiary. This connection raises further concerns about the potential misuse of advanced computing hardware in unauthorized or undisclosed data centers.
Conclusion: A Cautionary Tale for Export Violators
The case involving the Chinese nationals charged with exporting Nvidia AI chips to China underscores the growing scrutiny of semiconductor exports and the global race for AI supremacy. As U.S. regulators tighten export controls to prevent strategic technology from reaching rival nations, companies and individuals involved in global tech trade must ensure full compliance—or risk facing severe criminal penalties. Nvidia chip exports.
