Nvidia Chip Export Scandal Raises US-China Tensions

The arrest of individuals involved in smuggling Nvidia chips has intensified scrutiny on the potential illegal export of these chips from Singapore to China, bypassing US sanctions. Singaporean authorities have charged three men with fraud after an anonymous tip-off led to the investigation of servers that may have contained Nvidia chips. These servers, initially shipped from the US to Singapore and then to Malaysia, are suspected of being redirected to other destinations, possibly China. The US is concerned about Chinese AI company DeepSeek potentially using Nvidia chips, which are subject to strict export controls designed to prevent such transfers. Nvidia’s recent market activities reflect the impact of this scrutiny, as its share price has fallen significantly amidst these allegations. Singapore is coordinating with US and Malaysian authorities to further investigate these potentially unlawful export activities.