The US government is investigating Singapore-based Apex Logistics for its suspected role in smuggling Nvidia artificial intelligence chips to China, officials revealed today [1, 2, 3]. Authorities are examining whether Apex transported AI systems made by Super Micro Computer Inc that violated US export restrictions imposed in 2022 due to fears Beijing could use the technology for military purposes [1, 2, 3].
Washington restricted exports of advanced AI chips to China in 2022, citing concerns about the chips’ potential application in Chinese military tech [1, 2, 3]. Despite these measures, Nvidia chips have reportedly continued reaching China through a sophisticated shadow trade. US legal cases claim this illicit network involves shipments valued in the billions of dollars [1, 2, 3].
Asian governments including Singapore have launched investigations to crack down on these illicit supply chains. They emphasized their refusal to tolerate using regional logistics hubs to bypass US export controls [1, 2, 3].
Apex Logistics, whose parent company is Kuehne+Nagel, confirmed it is cooperating fully with the US investigation. The company acknowledged awareness of Washington’s concerns about a limited number of shipments handled in 2024 that may have been forwarded to prohibited destinations. "Apex is committed to complete compliance with all relevant regulations," the firm said in a statement [1, 2].
In 2024, Apex handled a small number of shipments currently under investigation related to the alleged smuggling, according to reports [1, 2].
News disclosures today shed light on the ongoing probe into Apex’s possible role in facilitating the transfer of Nvidia chips to China amid tight export restrictions [1, 2, 3]. The investigation is ongoing.
