Nvidia Chip Smuggling? Singapore Investigates Fraud Case

Singaporean authorities are investigating a potential fraud case involving servers containing Nvidia chips, which may have been exported to Malaysia before reaching an unknown final destination.

Home Affairs and Law Minister K. Shanmugam disclosed the probe during a press briefing on March 3, following an anonymous tip-off, reported Reuters.

The investigation centers on servers supplied by U.S. firms Dell Technologies and Super Micro Computer to Singapore-based companies. These servers were later exported to Malaysia, but it remains uncertain whether Malaysia was the final stop.

Shanmugam stated that the servers “may contain Nvidia chips,” highlighting concerns that they could be subject to U.S. export restrictions.

The Business Times says that the case is linked to three individuals, including a Chinese national, who were charged with fraud in Singapore on February 27. Bloomberg suggests that the investigation might involve attempts to transfer Nvidia’s AI chips to the Chinese artificial intelligence company DeepSeek.

Singapore has reached out to U.S. authorities to verify whether the exported servers contained restricted items and has pledged cooperation in any joint investigation, as reported by Reuters. The case comes amid broader U.S. scrutiny of AI chip shipments to China.

Last year, reports surfaced that Chinese universities and research institutes had obtained Nvidia’s advanced chips embedded in Dell, Super Micro, and Gigabyte Technology server products, as noted by Reuters.

Bloomberg highlights that Shanmugam emphasized that the Singaporean investigation is independent and was not initiated at the request of any foreign government. However, Washington has been actively tightening restrictions on China’s access to advanced semiconductor technology through third-party countries.

In December, Nvidia reportedly asked Dell and Super Micro to audit Southeast Asian customers to verify their possession of Nvidia-powered servers, as reported by Bloomberg.

Singapore, a major trade hub for Nvidia, accounted for 18% of the company’s total revenue in its latest fiscal year, though actual shipments to the country contributed less than 2% of revenue. The city-state serves as a key invoicing center for Nvidia’s sales across Asia, as noted by Reuters.

The case casts a spotlight on the role of intermediaries in routing restricted AI chips to China. While Shanmugam refrained from explicitly linking the probe to DeepSeek or Chinese buyers, the broader context of U.S. concerns over chip smuggling remains a focal point.

The outcome of the investigation could have significant implications for Singapore’s position in the global semiconductor supply chain.