Singapore is currently probing whether servers shipped to Malaysia by Dell Technologies Inc. and Super Micro Computer Inc. contained Nvidia Corp. chips that are barred from being exported to China. This investigation sheds light on the role of intermediaries in the global supply chain and how high-end semiconductors may be circumventing U.S. trade restrictions.
Crackdown on Potential Sanctions Violations
Singapore’s Law Minister, K Shanmugam, provided details of the probe following reports of multiple arrests linked to the illegal procurement and shipment of Nvidia chips. The individuals arrested are accused of misleading server suppliers about the actual end users of the hardware, which was transported from Singapore to Malaysia. Authorities are now trying to determine whether these servers, manufactured by Dell and Super Micro, were ultimately sent to other restricted countries.
This case places Singapore-based firms under scrutiny for their potential involvement in redirecting restricted Nvidia chips to China and other nations affected by U.S. trade policies. The investigation follows Bloomberg News’ report that the U.S. government is examining whether Chinese AI company DeepSeek obtained banned chips via third-party intermediaries in Singapore.
Uncertainty Over Final Destination of the Servers
Singapore has sought additional details from both Malaysia and the U.S. to confirm where the servers eventually ended up. “The question is whether Malaysia was the final destination or if the shipments were further rerouted,” Shanmugam stated.
Preliminary findings indicate that these servers may contain Nvidia chips, which could subject them to U.S. export restrictions. However, the investigation is ongoing, and no official confirmation has been made regarding the nature of the chips.
Company Responses
Nvidia has not commented on the matter, while Super Micro has yet to respond to inquiries. Dell, however, issued a statement emphasizing its strict trade compliance policies. “We maintain a rigorous trade compliance program and screen all sales orders through our internal systems, ensuring due diligence related to export and trade compliance,” the company stated. Dell further asserted that it takes immediate action against any customer found violating its policies, which could include terminating business relationships.
A Widening Global Investigation
This latest development adds to growing concerns over the enforcement of U.S. semiconductor export controls and how companies may be maneuvering around these restrictions. The case will likely have broader implications for global supply chain oversight, semiconductor trade compliance, and diplomatic relations between the U.S., Singapore, and Malaysia.
