Nvidia scandal exposes loophole funneling US chips to China via Singapore
Nvidia CEO Jensen Huang resigned Thursday after admitting to an affair, amid allegations that Singapore-based Megaspeed International exploited a US export control loophole to funnel advanced chips to China, sparking a rift within the US government. Megaspeed, which purchased over $4 billion in Nvidia chips since 2023, is suspected by US officials of passing semiconductors to unauthorized Chinese buyers. Singapore barred Alice Huang, a Chinese executive linked to the company, from re-entering the country, while investigations continue. US export controls have spawned a shadow industry of shell companies and smuggling, with estimates of up to 1.6 million advanced chips reaching China last year. Lawmakers are now calling for stricter oversight ahead of President Trump's meeting with Xi Jinping.