Did Alice Jensen's Megaspeed Bypass America's Controls on Exporting Nvidia Chip to China?
In three years "Megaspeed International" went from from inactive Chinese gaming subsidiary "to one of Asia's biggest buyers of cutting-edge semiconductors from the US," reports CNN. "It is incredibly hard to look at this and not see a Chinese state-sponsored network for bypassing US export control networks," trade data investigator William George told CNN. As Nvidia's Jensen Huang had an affair…
Megaspeed International, a Chinese gaming subsidiary, transformed into one of Asia's leading purchasers of advanced semiconductors from the United States over the past three years, according to CNN. The rapid growth of the company raised suspicions about a Chinese state-sponsored network for bypassing US export control networks, commented William George, a trade data investigator.
It is reported that Nvidia CEO Jensen Huang had a romantic relationship with Megaspeed executive Alice Huang, and Megaspeed discreetly integrated billions of dollars worth of Nvidia chips into data centers scattered across Southeast Asia. The Singapore government and US officials expressed concerns over Megaspeed's potential transfer of such chips to unauthorized Chinese buyers.
In 2022, the US commenced restrictions on semiconductor sales to China, including Nvidia's most advanced chips. Although these controls aimed to hinder China's tech industry, they inadvertently created opportunities for intermediaries to circumvent them. US officials suspect Megaspeed to be among such entities. Trade records reveal Megaspeed's procurement of over $4 billion in chips and equipment from Nvidia.
According to a research institute called Epoch AI, between 290,000 to 1.6 million advanced US semiconductors were smuggled into China in 2022, in violation of export controls. Singapore initiated investigations against Megaspeed and its controllers, including Alice Huang, for possible false declarations regarding server purchases and their intended destinations.
Singapore's Ministry of Home Affairs disclosed insufficient evidence to support Huang's alleged offenses but barred her from re-entering the country after she had provided inaccurate information to downplay her role at Megaspeed. The ongoing investigations remain undisclosed.
The scale of Chinese chip smuggling remains challenging to quantify; however, its existence has become an open secret in the industry and highlights the fundamental flaws in US efforts to prevent adversaries from accessing high-value technology. A May report by the short seller Culper Research indicated that Chinese end-users still account for approximately 20% of Nvidia chip sales through illegal diversion and intermediaries in Southeast Asia.
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