Two Chinese nationals were arrested for knowingly exporting tens of millions of dollars worth of microchips used exclusively to power AI technology, according to the United States Department of Justice.
Two Chinese Nationals Arrested on Complaint Alleging they Illegally Shipped to China Sensitive Microchips Used in AI Applications
— National Security Division, U.S. Dept of Justice (@DOJNatSec) August 5, 2025
🔗: https://t.co/Qfhr4wjec7 pic.twitter.com/VichVXgi6G
Chuan Geng of Pasadena, California, and Shiwei Yang of El Monte, California, are facing felony charges under the Export Control Reform Act, with a maximum sentence of 20 years. Geng turned himself in on Saturday. Yang, an illegal immigrant who has overstayed her visa, was arrested earlier that day.
According to the affidavit, from October 2022 to July 2025, Geng and Yang used their El Monte-based company, ALX Solutions Inc., to knowingly ship sensitive tech, GPUs, and other high-end computer parts used exclusively for AI-based technology to China, without the required license from the U.S. Department of Commerce.
Officials reviewed export records, business filings, and company websites, indicating that a December 2024 shipment, along with at least 20 others before it, were routed through Singapore and Malaysia. Both are well-known transshipment hubs used to mask illegal exports to China. Their company did not receive payments from the businesses they were shipping the parts to, but from companies based in Hong Kong and China.
According to the complaint and public filings, the chip in question, made by a top-tier AI chipmaker, is the “most powerful GPU chip on the market,” and “designed specifically for AI applications,” including everything from self-driving cars to medical diagnosis systems and other advanced technology.
Law enforcement seized the mobile devices of the defendants, where they found evidence of communication between the defendants about shipping the microchips through Malaysia in order to evade U.S. export laws.
The case is being prosecuted by Assistant U.S. Attorneys Colin S. Scott, Joseph Guzman, and Jenna Long of the Central District of California, with support from Chantelle Dial, a trial attorney in the National Security Division’s Counterintelligence and Export Control Section.
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