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The US Is Now Investigating Whether Singapore Is Responsible For Supplying NVIDIA’s AI Chips To China

Daniel Nenni

Admin
Staff member
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The US is now investigating whether DeepSeek got access to NVIDIA's AI chips through Asian intermediaries to identify trade loopholes.

DeepSeek's AI Achievement Has Prompted US To Toughen Up Export Restrictions, Now Possibly Investigating Trade Loopholes
After the DeepSeek fiasco, the US seems more encouraged to ensure that their in-house technology doesn't get to other hostile nations like China. Despite aggressive rounds of export controls and restrictions, China and other nations still have access to NVIDIA's high-end AI chips like the H100s, and in light of this, Bloomberg reports that US officials are probing whether these chips were provided to Chinese firms through nations like Singapore, which can come with severe consequences if the loophole is proven.

Well, why Singapore in particular? Based on data from @KobeissiLetter, it is claimed that NVIDIA's sales to the nation soared by up to 740% from the date DeepSeek was founded. Given that Singapore itself isn't involved much in the AI race, this has raised the possibilities of a loophole significantly. Interestingly, NVIDIA has admitted that the billing location might be different from the end-user location, implying that they know about possible loopholes as a workaround for US restrictions.


Moreover, China is said to have imported chips from Singapore in quantities way more than the US, and considering that Singapore is said to have only 99 data centers, the situation certainly seems alarming. For those unaware, DeepSeek is said to have computational resources worth over $1.6 billion and has around 10,000 of NVIDIA's "China-specific" H800 AI GPUs and 10,000 of the higher-end H100 AI chips. This means that China is certainly not deprived of cutting-edge AI GPUs, which means that the US's measures are pointless for now.



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Singapore isn't the only nation that has surfaced as a possibility since countries like the Philippines are also alleged to be involved in supplying chips to China. Now that the US is planning to launch a formal investigation, it means that NVIDIA's 20% AI revenue is now at stake, and if the US decides to block this trade loophole, it might cause severe consequences, not just for Team Green, but the AI markets in general.

 

Singapore Import Rules and "Red Flag" Indicators​

Singapore requires that importers of many items listed on the Singapore list of controlled goods obtain permits prior to import or export of these items. Permits are issued by the Singapore Customs Department. Singapore's export control list generally corresponds to multilaterally controlled items on the Commerce Control List (CCL).

BIS strongly encourages U.S. exporters to know whether foreign customers are obligated to obtain an import permit or other authorizations prior to exporting controlled items. As a best practice, prior to shipment, BIS recommends U.S. exporters provide foreign customers with the Export Control Classification Number (ECCN) of items to be exported and request a copy of any required foreign authorizations. Failure of a foreign customer to honor a request to provide a copy of any required foreign import or export authorizations would present a "red flag" that indicates an export may be destined for an inappropriate end use, end user or destination. For "red flag" guidance, see Supplement No. 3 to Part 732 of the EAR. For additional information, please refer to the Singapore Customs website at http://www.customs.gov.sg.

https://www.bis.doc.gov/index.php/p...-import-export-license-requirements/singapore
 

Singapore Import Rules and "Red Flag" Indicators​

Singapore requires that importers of many items listed on the Singapore list of controlled goods obtain permits prior to import or export of these items. Permits are issued by the Singapore Customs Department. Singapore's export control list generally corresponds to multilaterally controlled items on the Commerce Control List (CCL).

BIS strongly encourages U.S. exporters to know whether foreign customers are obligated to obtain an import permit or other authorizations prior to exporting controlled items. As a best practice, prior to shipment, BIS recommends U.S. exporters provide foreign customers with the Export Control Classification Number (ECCN) of items to be exported and request a copy of any required foreign authorizations. Failure of a foreign customer to honor a request to provide a copy of any required foreign import or export authorizations would present a "red flag" that indicates an export may be destined for an inappropriate end use, end user or destination. For "red flag" guidance, see Supplement No. 3 to Part 732 of the EAR. For additional information, please refer to the Singapore Customs website at http://www.customs.gov.sg.

https://www.bis.doc.gov/index.php/p...-import-export-license-requirements/singapore

It is like plugging a leak in a strainer. Unless Singapore is proactive it will continue. Maybe the current administration will hold Singapore accountable? That seems to be the trend.
 
It is like plugging a leak in a strainer. Unless Singapore is proactive it will continue. Maybe the current administration will hold Singapore accountable? That seems to be the trend.

The US and the EU know whats going on they have shown the figures in Seminars I have attended regarding Import/Export to/from sanction countries and products on non-export lists.

I think they are giving countries a chance to do something before they bring the hammer.

Hopefully Donny keeps the US one going as the US do put on a good spread as well as illicit good info
 
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