Singapore Charges Three with Fraud Linked to Nvidia Chips

Singaporean authorities have charged three men with fraud, alleging their involvement in a scheme to illegally move Nvidia Corporation (NVDA) chips to China, potentially circumventing US export controls. The arrests and charges have raised concerns about the global supply chain of advanced chips and the geopolitical tensions surrounding their distribution.



The three men, two Singaporean nationals aged 41 and 49, and a 51-year-old Chinese national, were charged with criminal conspiracy to commit fraud on a supplier of servers by making false representations. The Chinese national was also charged with committing fraud by making a false representation that a company named Luxuriate Your Life Pte would be the end user of the items (Bloomberg, 2025-02-28).

The case comes weeks after reports that the US is investigating whether Chinese artificial intelligence sensation DeepSeek had circumvented US chip sanctions with the help of third parties in Singapore. Local media, including the broadcaster CNA, reported that the arrests were linked to the shipment of Nvidia chips to China.



The police did not provide details on the nature of the fraud or the products potentially involved, nor did they name the server computer supplier involved. However, the charges carry a prison sentence of up to 20 years in jail, and the police are investigating 22 individuals and companies for suspected involvement in fraud by false representation.

Singapore, with close trade relations with both the US and China, has found itself in the middle of a tech war between the two superpowers. The Trump administration is probing whether Hangzhou-based DeepSeek bought advanced Nvidia chips through third parties in Singapore, bypassing US export restrictions on sales of AI training chips to China.

A senior Singaporean official said last week that Nvidia chips shipped to the country only accounted for less than 1% of the US giant's revenue, even though the Santa Clara, California-based firm billed more than a fifth of its sales to buyers in the city-state. This discrepancy has raised questions about the role of intermediaries in the global supply chain of advanced chips and the potential for circumventing export controls.

The recent arrests and charges in Singapore have exposed the role of local intermediaries in funneling Nvidia chips around the world, potentially circumventing US export controls. This incident highlights the geopolitical tensions surrounding the global supply chain of advanced chips and the potential for further restrictions or retaliatory measures. As the investigation into these activities continues, Nvidia and other tech companies may need to reassess their business practices and comply with US export restrictions to avoid potential disruptions in their supply chain and reputational damage.

In conclusion, the fraud charges against the three men in Singapore have significant implications for the global supply chain of Nvidia chips, particularly in relation to the US-China tech war. The incident has exposed the role of intermediaries in circumventing US export controls, potentially disrupting Nvidia's supply chain, and highlighting the geopolitical tensions surrounding the global supply chain of advanced chips. As the investigation unfolds, Nvidia and other tech companies may need to address these issues and reassure their stakeholders about their commitment to ethical business practices and compliance with export controls.