US Probes Shipments of Nvidia AI Chips to China

U.S. authorities are investigating Singapore-based Apex Logistics, a unit of Swiss shipping giant Kuehne+Nagel, for allegedly facilitating the smuggling of advanced Nvidia AI chips to China. The Commerce Department's Bureau of Industry and Security is examining 47 shipments handled by Apex in 2024. These shipments may have involved servers containing Nvidia chips, originating from the U.S. and destined for China, potentially via Hong Kong.

Investigators are reportedly focused on whether Apex transported servers made by Super Micro Computer, which are equipped with Nvidia chips. According to sources, two former Apex employees allegedly applied a shipping code to these consignments, designating the hardware as exempt from U.S. export controls. Apex has stated it is cooperating with the investigation and has implemented enhanced compliance procedures.

Kuehne+Nagel's stock experienced a notable drop following the news of the investigation. The U.S. has had restrictions on advanced Nvidia chip sales to China since 2022, citing national security concerns. This case is part of a broader enforcement effort against illegal semiconductor trade, with previous actions involving other individuals and companies.

Neither Nvidia nor Super Micro has been implicated in the current Apex probe. This investigation could represent the first U.S. action against a transportation company for alleged involvement in the illicit semiconductor trade. The broader illicit market for these chips into China is estimated to be worth billions of dollars.