US investigates Apex Logistics over alleged Nvidia AI chip smuggling to China
The US government is reportedly investigating Singapore-based Apex Logistics for allegedly smuggling Nvidia AI chips to China through Super Micro Computer servers, potentially marking the first action against a transportation company for such activities. The investigation concerns shipments handled in 2024 that may have violated US export restrictions imposed to prevent advanced semiconductors from reaching China's military.
What happened
The US government is investigating Singapore-based Apex Logistics, a unit of shipping giant Kuehne+Nagel, for its suspected role in smuggling Nvidia Corp. AI chips to China.
Authorities are examining whether Apex may have transported AI systems made by Super Micro Computer Inc. in violation of US export restrictions on advanced AI hardware.
The investigation concerns a small number of shipments that Apex handled in 2024 which may have involved materials and equipment ultimately forwarded to prohibited locations.
Reported impact
Kuehne+Nagel's shares declined as much as 4.2% in Europe following the investigation announcement, the biggest intraday fall in more than three months.
Index analysis
Washington restricted sales of advanced AI chips to China in 2022 due to concerns that such components could benefit Beijing's military efforts.
The US government has alleged in legal cases that a sophisticated shadow trade has gotten billions of dollars' worth of Nvidia chips to China, with chips often passing through multiple countries.
The investigation highlights how much of the supply chain the US believes may be involved in illicit operations and sends a warning to freight companies about their responsibility for shipments breaching export rules.
Governance controls
Apex stated it is cooperating fully with the US investigation and is committed to complete compliance with all relevant regulations.
Singapore authorities have said they will not tolerate those who use the city-state to circumvent export controls of other countries, and have begun investigating the black market in semiconductors.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.