Two Chinese nationals – one living in the U.S. illegally – were arrested this week on charges of illegally sending Nvidia’s advanced AI chips to China, Department of Justice authorities announced Tuesday. The chips are worth tens of millions of dollars.
According to the DOJ, Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, are charged with violating the Export Control Reform Act, which currently restricts the sale or shipment of certain advanced technologies to China for national security reasons.
Geng, a legal permanent resident, voluntarily turned himself in to federal authorities on Saturday. Yang, who overstayed her visa, was arrested that same day.
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Advanced chips shipped through California company
Between October 2022 and July 2025, Geng and Yang allegedly exported sensitive technology to China from the United States. They did this through their company, called ALX Solutions Inc., which is based in El Monte, California.
The technology they exported includes graphics processing units (GPUs), which are high-powered computer components used in AI, data centers, and modern computing.
The chip is described as the “most powerful GPU chip on the market,” specifically built for self-driving cars, medical diagnosis systems, and other advanced technologies powered by artificial intelligence.
Licensing required for export
U.S. law requires companies to get a license from the Department of Commerce before exporting these types of advanced chips to certain countries, including China. The DOJ said Geng and Yang did not get that required license, meaning the exports were illegal.
Their company, ALX Solutions Inc., was allegedly set up shortly after the U.S. government started enforcing the licensing rule, implying it may have been created to get around the new export controls.
Legal proceedings underway
Geng is temporarily out of jail on a $250,000 bond. Yang is still in custody until a hearing on Aug. 12. Neither has officially entered a plea yet.
If convicted, they could each face a maximum sentence of 20 years in prison.
