Malaysia and Singapore Step Up Enforcement on Nvidia Chip Exports: Charges Filed Over 917 Smuggled Servers, Megaspeed Hires Law Firm for Audit
Malaysia is investigating whether Megaspeed's subsidiary re-exported AI hardware, while Singapore has charged an executive over 917 servers containing restricted Nvidia chips. Megaspeed announced it hired a US law firm for a compliance audit.
According to Tom's Hardware, Malaysia and Singapore are intensifying scrutiny of AI hardware shipments amid concerns about circumventing U.S. export restrictions on China. Malaysia's Ministry of Investment, Trade and Industry is investigating whether Speedmatrix, the Malaysian subsidiary of Singapore-based Megaspeed, re-exported any AI processors and servers imported for local data centers. Despite months of investigation, authorities have yet to determine if such shipments occurred or violated Malaysian laws. Malaysia introduced restrictions on the export, transit, and trans-shipment of advanced U.S.-developed AI accelerators in July 2025, requiring companies to obtain permits.
Meanwhile, Singaporean authorities have brought 41 criminal charges against Shi Bingzhe, a 34-year-old Chinese citizen who served as director of Superphi and chief operating officer of NJ Global Financial. Prosecutors allege that these two companies purchased 917 servers containing restricted Nvidia hardware from Aperia International in 41 transactions between May 2024 and February 2025, with reason to believe the servers were linked to criminal activity. The case now involves five individuals and six companies. If convicted, Shi faces up to 10 years in prison and a fine of S$500,000 per charge.
In response, Megaspeed announced on November 12 that it had hired a U.S. law firm to conduct a comprehensive inventory of its AI GPUs and independently assess its compliance with U.S. export-control regulations. The company confirmed it had cooperated with inspections by the U.S. Department of Commerce's Bureau of Industry and Security (BIS). Megaspeed CEO James Tan Yong Pong stressed that compliance and transparency are priorities, though the company did not disclose the number or models of GPUs owned, nor the specific findings of BIS inspections.