As per a report by Bloomberg News, Singapore authorities are conducting an investigation to determine if Dell Technologies Inc. and Super Micro Computer Inc. servers, forwarded to Malaysia, contained Nvidia Corp chips that are restricted from sale to China.
On Monday, Singapore’s Law Minister K Shanmugam disclosed about the investigation following reports of arrests related to the illegal procurement and distribution of Nvidia chips, allegedly bypassing U.S. sanctions.
The arrested individuals are suspected of misinforming server suppliers about the true end-users of the hardware, which was transported from Singapore to Malaysia, leading to authorities currently examining whether these servers were sent to other destinations.
The probe is shedding light on the involvement of Singapore-based entities in potentially redirecting Nvidia chips to China and other regions restricted by U.S. policies, which followed a recent Bloomberg News report indicating that U.S. authorities were examining whether Chinese AI company DeepSeek may have evaded U.S. chip restrictions with assistance from third-party intermediaries in Singapore.
Singapore has reached out to both Malaysia and the U.S. for more details to establish the servers’ final destinations. Preliminary investigations imply that the chips in question could potentially subject these devices to U.S. export limitations.
For Nvidia, the tech giant depends on manufacturers like Dell, Super Micro, and Hewlett Packard Enterprise Co. for producing servers equipped with its AI chips, which are then distributed directly or through third parties to data centers globally.
Previously, Super Micro and Dell have been under scrutiny for their potential involvement in the transfer of Nvidia chips, subject to U.S. controls, to China. The Information reported in December citing sources close to the U.S. Department of Commerce that Nvidia requested Super Micro and Dell to verify the status of Nvidia-powered servers sold in Southeast Asia.
As per the Singaporean minister, the current investigation does not explicitly connect to DeepSeek or any Chinese buyers, as it remains ongoing. The case is centered around independent inquiries within Singapore, initiated by an anonymous tip, rather than suggestions from a foreign government.
Over recent years, the U.S. has intensified efforts to prevent China from acquiring restricted technology through other nations, extending semiconductor trade restrictions on a global scale. The Trump administration is reviewing these regulations, aimed at controlling the export of AI computing capabilities to regions where U.S. officials are wary of China’s growing influence.
Commerce Secretary Howard Lutnick indicated that the Chinese AI startup DeepSeek might have bypassed U.S. export restrictions to develop its R1 model and promised a decisive response to address the situation.
Meanwhile, a Singaporean official noted that while shipments of Nvidia chips to Singapore accounted for less than 1% of Nvidia’s revenue, the company reports over 20% of its sales going to customers in the city-state.
