Singapore Says U.S. Offered Limited Help in Probe of AI Chip Diversion to China

Singapore authorities investigating the suspected diversion of advanced Nvidia AI chips to China said on Thursday that the United States provided only limited assistance, exposing gaps in export‑control enforcement as restricted semiconductors continue reaching Chinese buyers through Southeast Asian intermediaries.

The city‑state’s Ministry of Home Affairs disclosed that the U.S. Commerce Department’s Bureau of Industry and Security (BIS) carried out a shipment‑verification check at Singapore‑based cloud firm Megaspeed in June 2025, with the company’s then‑CEO Alice Huang present. That visit was the first time Singapore learned of Washington’s interest in Megaspeed, the ministry said [7]. Singapore police interviewed Huang and impounded her passport the same day as part of an independent investigation opened in February 2025 into several companies, including Megaspeed, over potential false declarations in the purchase of servers and related offences [7].

The ministry said it had also been examining U.S. server maker Super Micro Computer, whose three associates — including a co‑founder — were charged in March by U.S. prosecutors with helping smuggle billions of dollars of AI chips to China through Southeast Asia and Taiwan [7]. Singapore made repeated requests to the U.S. Department of Justice and the FBI for help securing Super Micro’s cooperation. “Despite these repeated requests, Singapore has to date received limited information or assistance in respect of the company,” the ministry stated [7].

Alice Huang was investigated for possible offences including buying servers that were exported via Singapore to Malaysia without entering the Singapore market. Authorities found insufficient evidence to establish criminal offences but concluded she had provided “information, which she knew to be inaccurate” during the investigation and downplayed her role at Megaspeed [7]. Her passport was returned in February and she was barred from re‑entering Singapore; she is now living in Beijing, according to Bloomberg News [7]. U.S. Attorney General Todd Blanche said on Thursday the Justice Department has not yet reached a conclusion on whether Huang was a Chinese spy [7].

U.S. enforcement stall

The limited cooperation comes amid reported resistance within the Trump administration to tightening controls on chip diversion. Reuters reported on Wednesday that Commerce Secretary Howard Lutnick stalled President Donald Trump’s third attempt this year to crack down on companies suspected of diverting Nvidia chips to China [1]. At a Situation Room meeting last Thursday, Treasury Secretary Scott Bessent confronted Lutnick about his department’s resistance to implementing export controls; Lutnick appeared to agree but said he needed to check with Trump, according to Axios [1]. The U.S. has not added any entities to its Entity List since October 2025, the longest pause in more than a decade [1].

Megaspeed’s response

Megaspeed, which describes itself as an Nvidia Cloud Partner in the Asia‑Pacific region offering access to GB200 NVL72 and HGX H100 systems, said on Thursday it takes compliance obligations under U.S. export‑control laws “extremely seriously” and has cooperated with U.S. inspections [2][3]. Chairman and CEO James Tan Yong Pong said the company “stands ready to cooperate fully with any other relevant US government authority” and has retained an American law firm to conduct a “comprehensive census” of its graphics processing units and independently verify its export‑control practices [3]. The firm’s assets surged to $3 billion in 2024 from $33 million in 2023, while revenue jumped to $294 million from zero [2].

Singapore’s stance

Singapore has maintained it does not enforce “unilateral export controls imposed by other countries” but acts “firmly against companies and individuals who violate our laws and are engaged in fraudulent and dishonest practices” [2]. The ministry said investigations into Megaspeed and six individuals are ongoing and that the city‑state would “not allow companies or individuals to misuse Singapore’s business environment to engage in fraud or dishonest practices,” adding it would cooperate with foreign authorities where appropriate [7].

Congressional pressure

The affair has intensified congressional scrutiny. House Speaker Mike Johnson said Thursday there is a “growing consensus in Congress” favoring new restrictions on chip exports to China [4]. Senators Elizabeth Warren and Jim Banks have proposed the AI Overwatch Act to give Congress greater oversight of export‑rule changes, while the Chip Security Act would require chipmakers to track advanced AI processors and notify the government of suspected diversions [4]. Democrats on the Senate Finance and House Ways and Means committees have notified Lutnick of a probe into the administration’s approval of AI chip sales to Chinese companies “with concerning links to the Chinese government, military and sanctioned entities,” accusing the Commerce Department of a “profound lack of due diligence” [6].

As restricted chips continue to flow through regional hubs, Singapore’s disclosure of limited U.S. assistance underscores the practical difficulties of enforcing export controls when cooperation between jurisdictions remains uneven.