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US arrests tech CEO accused of smuggling $300M in Nvidia chips into China

The US Department of Justice has arrested Greg Lui, CEO of Earthmade Computer, for allegedly orchestrating a scheme to smuggle over $300 million in export-controlled Nvidia A100 and H100 GPUs into China through fraudulent paperwork and shipments routed via Malaysia and Singapore. The operation, which ran from October 2023 to August 2026, used South Asian freight-forwarding firms to mask the true destination of high-performance AI chips.

Background

The US has imposed increasingly stringent export controls on advanced semiconductors to China since 2022, citing national security concerns over AI and military applications. Enforcement actions have escalated as Beijing seeks alternative pathways to obtain restricted chips.

Source
Ars Technica
Published
Oct 3, 2026 at 02:39 AM
Score
7.0 / 10