DoJ Arrests Two Chinese Nationals For Illegally Exporting AI Microchips To China

Last Updated:August 06, 2025, 02:39 IST

The individuals have been identified as Chuan Geng and Shiwei Yang, both 28 years old.

An affidavit alleges that they exported highly sensitive and restricted technology to China between October 2022 and July 2025

The US Department of Justice (DOJ) has arrested two Chinese nationals on charges of illegally exporting sensitive microchips used in artificial intelligence (AI) applications to China without the required authorisation. The arrests, which took place on Saturday, are part of an ongoing investigation conducted jointly by the Department of Commerce’s Bureau of Industry and Security and the Federal Bureau of Investigation (FBI), according to an official press release.

The individuals have been identified as Chuan Geng and Shiwei Yang, both 28 years old. According to the DoJ, Geng is a lawful permanent resident of the US, while Yang is currently in the country illegally, having overstayed her visa. The pair is accused of violating the Export Control Reform Act (ECRA) and, if convicted, could each face a statutory maximum sentence of 20 years in federal prison.

An affidavit filed with the court alleges that the two knowingly exported highly sensitive and restricted technology to China between October 2022 and July 2025. Specifically, they are accused of exporting advanced Nvidia H100 chips, high-performance semiconductors used in training large language models and other AI applications, without the necessary licenses or permissions from the US Department of Commerce. These exports were conducted through their California-based company, ALX Solutions Inc., which was allegedly established shortly after new export licensing requirements for such chips were introduced.

In addition to the H100 chips, Geng and Yang reportedly exported Nvidia’s PNY GeForce RTX 4090 graphics cards, also without proper authorisation, reported CNA. These high-end graphics processing units (GPUs) are similarly subject to US export controls due to their potential military and AI-related applications.

To circumvent US export laws, the defendants allegedly utilised third-party shipping and freight-forwarding companies based in Singapore and Malaysia. According to the DoJ, this tactic was intended to conceal the true destination of the shipments, China. Despite exporting millions of dollars’ worth of microchips, ALX Solutions did not receive direct payments from the recipients. Instead, the funds were routed through entities based in Hong Kong and mainland China, including a $1 million transaction.

Yang was arrested on August 2, while Geng voluntarily surrendered to federal authorities the same day. Both appeared before the US District Court in Los Angeles on Monday. Geng was released on a $250,000 bond, whereas Yang remains in custody. Her detention hearing is scheduled for August 12.

Washington D.C., United States of America (USA)

News world DoJ Arrests Two Chinese s For Illegally Exporting AI Microchips To China

Read More