The U.S. Justice Department has indicted four people accused of illegally exporting Nvidia AI chips to China, prompting renewed calls for a chip-tracking law. Prosecutors say 400 Nvidia A100 GPUs were shipped to China via Malaysia and that attempts to move H100 and H200 GPUs through Thailand were blocked. The alleged scheme involved a Tampa front company and nearly $4 million in wire transfers from China. Lawmakers urge passage of the bipartisan Chip Security Act to require location verification and mandatory reporting to prevent future diversions.
US Indicts Four in Alleged Smuggling of Nvidia AI Chips to China; Lawmakers Push Chip-Tracking Bill
The U.S. Justice Department has indicted four people accused of illegally exporting Nvidia AI chips to China, prompting renewed calls for a chip-tracking law. Prosecutors say 400 Nvidia A100 GPUs were shipped to China via Malaysia and that attempts to move H100 and H200 GPUs through Thailand were blocked. The alleged scheme involved a Tampa front company and nearly $4 million in wire transfers from China. Lawmakers urge passage of the bipartisan Chip Security Act to require location verification and mandatory reporting to prevent future diversions.
09:39 AM, 11/21/2025Security
The U.S. Department of Justice has indicted four people accused of conspiring to export Nvidia AI chips to China in violation of U.S. export controls. The case has intensified calls from lawmakers for legislation to track high-performance chips and prevent diversion to unauthorized users.
Allegations and enforcement actions
According to the indictment, two U.S. citizens and two Chinese nationals are accused of creating fake contracts and false documentation to route shipments through third countries while knowing the final destination was China. Prosecutors say the group successfully moved 400 Nvidia A100 GPUs to China via Malaysia between October 2024 and January 2025. Authorities also say they intercepted attempts to export 10 Hewlett-Packard supercomputers equipped with Nvidia H100 GPUs and 50 Nvidia H200 GPUs through Thailand.
Scheme details
In a separate thread of the case in Florida, investigators allege a Tampa-based company was used as a front to purchase and export the chips, and that the operation was financed in part by nearly $4 million in wire transfers from China. Lawyers for one defendant declined to comment and others did not immediately respond to requests for comment.
Legislative response
John Moolenaar, chair of the U.S. House Select Committee on China, said: "China recognizes the superiority of American AI innovation and will do whatever it must to catch up. That's why the bipartisan Chip Security Act is urgently needed." The bill, introduced in May and supported by about 30 cosponsors, would require chip location verification, mandate that manufacturers report and share information about suspected diversion, and explore additional measures to keep advanced U.S.-made chips out of the wrong hands.
Broader implications
U.S. export curbs on advanced semiconductors are intended to slow Beijing's military modernization and protect U.S. technological leadership. China has criticized the restrictions, calling them an effort to weaponize economic and trade policy. The indictment underscores the enforcement challenges Washington faces in policing complex global supply chains and preventing circumvention of export controls.
Sources: Karen Freifeld; additional reporting by David Shepardson and Jonathan Stempel; edited by Lisa Shumaker.