Malaysia and Singapore have intensified scrutiny of AI hardware shipments amid concerns about the potential circumvention of U.S. export restrictions on China. Malaysia has launched an investigation into whether AI hardware imported by a subsidiary of the ill-fated Megaspeed was subsequently exported to other countries, reports Reuters. Meanwhile, Singapore has charged another executive over questionable purchases of 917 servers that may contain Nvidia accelerators, according to The Straits Times. The news follows the resignation of Nvidia CEO Jensen Huang over claims he had multiple extra-marital affairs, including with a possible Chinese intelligence asset who facilitated GPU smuggling into China. Analysts speculate that systematic chip smuggling may be the reason behind his departure. Go deeper with TH Premium: Taiwan, trade, and tariffs(Image credit: tsmc)While the U.S. flip-flops on chip sanctions, China is building its own chip supply marketThe state of China's decade-long semiconductor pushHuawei Ascend NPU roadmap examined China's CXMT targets 30% DRAM memory market share by 2030 with sixth mega-fabChina's latest round of rare-earth export controls explainedMalaysia's Ministry of Investment, Trade and Industry is examining whether Speedmatrix, the Malaysian subsidiary of Singapore-based Megaspeed, re-exported any of the AI processors and servers it had imported for use in local data centers. Apparently, after months of investigating, authorities have yet to find out whether any such shipments occurred and, if they did, whether they complied with Malaysian laws. Malaysia introduced restrictions on the export, transit, and trans-shipment of advanced U.S.-developed AI accelerators in July 2025, so it now requires companies to obtain appropriate permits.The Malaysian ministry said it was cooperating with customs authorities as well as officials in Singapore and the U.S., and could introduce additional restrictions. Prime Minister Anwar Ibrahim said there was no evidence that Megaspeed-related AI hardware had left Malaysia, but he promised to cooperate with international investigations. Speaking of Megaspeed, the company said 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, reports DigiTimes. The company also confirmed that it had cooperated with inspections by the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and was prepared to cooperate with other U.S. government agencies if necessary. James Tan Yong Pong, chief executive of Megaspeed, stressed that compliance with U.S. export rules as well as transparent operations were always a priority for the company. However, Megaspeed did not disclose how many GPUs it owns and which GPU models it has, what BIS examined during its inspections, or whether the authorities had identified any violations.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. The two companies purchased 917 servers containing restricted Nvidia hardware from Aperia International in 41 transactions between May 2024 and February 2025, according to prosecutors. Authorities allege that the companies had reason to believe the servers were linked to criminal activity by Aperia International. Superphi now faces six charges, while NJ Global Financial faces 35.The latest charges expand a case that now involves five individuals and six companies. Four firms — Aperia International, A-Speed Infotech, Aperia Cloud Services (II), and Luxuriate Your Life — were charged in July over allegedly making false claims when purchasing servers. Meanwhile, the exact nature of those claims was not disclosed in the report. Authorities have frozen the disposal of a property worth approximately S$55 million and confiscated around S$1 million from bank accounts. Shi faces up to 10 years in prison and a fine of S$500,000 per charge if convicted. His next court appearance is scheduled for January 4, 2027.The two cases largely highlight the significance of Malaysia and Singapore in the supply chain of restricted AI hardware to places where it should not be, such as China. Singapore's investigation focuses on alleged fraud and transactions involving proceeds of criminal activity, whereas Malaysia seeks to find out whether imported AI equipment was subsequently shipped abroad in violation of local regulations. Neither investigation has found that the hardware ultimately reached China, but both illustrate difficulties that authorities face as they attempt to enforce restrictions on advanced AI hardware across international supply chains.