US arrests 2 Chinese for allegedly illegally selling sensitive microchips used in AI applications to China

ANKARA

The US arrested two Chinese nationals for allegedly illegally selling sensitive microchips used in AI applications to China, the Justice Department said on Tuesday.

In a statement, the department said that Chuan Geng and Shiwei Yang are accused of exporting “tens of millions of dollars’ worth of sensitive microchips used in artificial intelligence (AI) applications” without obtaining a license from the Department of Commerce between October 2022 and July 2025 through their El Monte-based company, ALX Solutions.

According to the statement, the company sent the chips in more than 20 shipments over three years to logistics firms in Malaysia and Singapore, from where they were later transferred to China.

“ALX Solutions has not received payments from the entities to which they purportedly exported goods. Instead, ALX Solutions received numerous payments from companies based in Hong Kong and China, including a $1 million payment from a China-based company in January 2024,” it said.

Geng and Yang “are charged with violating the Export Control Reform Act, a felony that carries a statutory maximum penalty of 20 years in prison,” said the statement.

ANKARA

The US arrested two Chinese nationals for allegedly illegally selling sensitive microchips used in AI applications to China, the Justice Department said on Tuesday.

According to the statement, the company sent the chips in more than 20 shipments over three years to logistics firms in Malaysia and Singapore, from where they were later transferred to China.

Geng and Yang “are charged with violating the Export Control Reform Act, a felony that carries a statutory maximum penalty of 20 years in prison,” said the statement.