Singapore Says U.S. Gave Only Limited Help in AI Chip Diversion Probe

By Olivia Hart

Singapore's Ministry of Home Affairs said on Thursday that the United States has provided only limited assistance in its probe of suspected Nvidia AI chip diversion to China, despite repeated formal requests. The disclosure lands as restricted semiconductors keep flowing to Chinese buyers through Southeast Asian intermediaries, and as enforcement inside Washington itself appears stalled.

The ministry detailed that the U.S. Commerce Department's Bureau of Industry and Security ran a shipment-verification check at Singapore-based cloud firm Megaspeed in June 2025, with then-CEO Alice Huang present. That visit was the first time Singapore learned of Washington's interest in Megaspeed, the ministry said.

Singapore had not been idle. Police opened an independent investigation in February 2025 into several companies, including Megaspeed, over potential false declarations in server purchases and related offences. Officers interviewed Huang and impounded her passport the same day as the BIS visit.

What happened to Alice Huang?

Investigators examined whether Huang bought servers that were exported via Singapore to Malaysia without ever entering the Singapore market. Authorities found insufficient evidence for criminal offences. But they concluded she had provided "information, which she knew to be inaccurate" during the investigation and had downplayed her role at Megaspeed.

Her passport was returned in February, and she was barred from re-entering Singapore. She now lives in Beijing, according to Bloomberg News. U.S. Attorney General Todd Blanche said on Thursday that the Justice Department has not yet reached a conclusion on whether Huang was a Chinese spy. The open question of espionage, left unresolved on both sides, hangs over the entire case.

How far does U.S. cooperation go?

Not far, by Singapore's account. The ministry said it had also been examining U.S. server maker Super Micro Computer, three of whose associates — including a co-founder — were charged in March by U.S. prosecutors with helping smuggle billions of dollars of AI chips to China through Southeast Asia and Taiwan. Singapore made repeated requests to the DOJ and the FBI for help securing Super Micro's cooperation.

"Despite these repeated requests, Singapore has to date received limited information or assistance in respect of the company," the ministry stated.

The gap matters beyond one company. Reuters reported on Wednesday that Commerce Secretary Howard Lutnick stalled President Donald Trump's third attempt this year to crack down on companies suspected of diverting Nvidia chips to China. At a Situation Room meeting last Thursday, Treasury Secretary Scott Bessent confronted Lutnick about his department's resistance to implementing export controls; Lutnick appeared to agree but said he needed to check with Trump, according to Axios. The U.S. has not added any entities to its Entity List since October 2025 — the longest pause in more than a decade.

What is Megaspeed's defense?

Megaspeed, which describes itself as an Nvidia Cloud Partner in the Asia-Pacific region offering access to GB200 NVL72 and HGX H100 systems, said on Thursday it takes compliance obligations under U.S. export-control laws "extremely seriously" and has cooperated with U.S. inspections. Chairman and CEO James Tan Yong Pong said the company "stands ready to cooperate fully with any other relevant US government authority." It has retained an American law firm to conduct a "comprehensive census" of its graphics processing units and independently verify its export-control practices.

The company's financial arc invites scrutiny of its own. Assets surged to $3 billion in 2024 from $33 million in 2023 — roughly a ninetyfold increase in a single year — while revenue jumped to $294 million from zero. Growth of that speed is either a compliance story or a red flag; Singapore's ongoing investigation into Megaspeed and six individuals suggests authorities have not yet decided which.

Singapore has drawn its own line. It does not enforce "unilateral export controls imposed by other countries," the government maintains, but acts "firmly against companies and individuals who violate our laws and are engaged in fraudulent and dishonest practices." The ministry added it would "not allow companies or individuals to misuse Singapore's business environment" and would cooperate with foreign authorities where appropriate.

Is Congress about to force the issue?

The affair has intensified congressional scrutiny. House Speaker Mike Johnson said Thursday there is a "growing consensus in Congress" favoring new restrictions on chip exports to China. Senators Elizabeth Warren and Jim Banks have proposed the AI Overwatch Act to give Congress greater oversight of export-rule changes, while the Chip Security Act would require chipmakers to track advanced AI processors and notify the government of suspected diversions.

Democrats on the Senate Finance and House Ways and Means committees have notified Lutnick of a probe into the administration's approval of AI chip sales to Chinese companies "with concerning links to the Chinese government, military and sanctioned entities." They accuse the Commerce Department of a "profound lack of due diligence."

The takeaway is uncomfortable for Washington: export controls are only as strong as the cooperation behind them, and right now both allies and agencies are pulling in different directions. Until U.S. enforcement machinery restarts — the Entity List pause is now the longest in over a decade — Singapore's disclosure suggests the region's diversion channels will stay open.