Chinese Nationals Charged with Illegally Exporting Advanced Microchips

Two Chinese citizens are facing serious charges related to the illegal export of valuable microchips, utilized in various Department of Justice (DOJ) AI applications, worth tens of millions of dollars. This was made public on Tuesday.

The individuals, Chuan Geng and Shiwei Yang, are accused of “willfully and intentionally” relocating chips to China, including the advanced Nvidia H100, during the period from October 2022 to July 2025. They allegedly did this without obtaining the required licenses from the Ministry of Commerce.

According to the DOJ, Alx Solutions Inc., the defendants’ company, was established in 2022 shortly after the U.S. implemented broad export restrictions on high-tech chips bound for China. This information comes from an affidavit submitted in the criminal complaint.

The company reportedly dispatched restricted technology to cargo carriers in Malaysia and Singapore on more than 20 occasions, ultimately sending the shipments to China.

Furthermore, it is claimed that the California-based company received funds from firms in China and Hong Kong, but there were no payments from companies in Malaysia or Singapore.

The defendants are also alleged to have misrepresented the cargo as “subject to federal law and regulations” in an attempt to dodge inspection, despite the fact that the chips required licensing according to a DOJ statement.

Described in the DOJ release as “the most powerful GPU chip on the market,” the chip is particularly designed for AI applications, playing a critical role in developing technologies like self-driving cars and medical diagnostic systems.

The charges include violations of the Export Control Reform Act, which is a felony that could lead to up to 20 years in federal prison.

On Saturday, Yang was arrested for staying in the U.S. after overstaying his visa. Geng, who is a legal permanent resident, surrendered to authorities later that same day.

They made their court appearance before a magistrate late Monday, with Geng being released on a $250,000 bond. The next court date is set for September 11.

The DOJ reported that law enforcement had previously searched the company’s office, confiscating the defendants’ phones. It revealed that there were communications exchanged between the defendants about exporting chips to China via Malaysia to circumvent U.S. export laws.