Singapore charges third person in AI chip fraud case linked to Nvidia export violations

Singapore Expands AI Chip Fraud Investigation with New Charges

Singapore prosecutors charged Jenny Lim, the 51-year-old chief financial officer of Aperia International, with fraud conspiracy on Thursday, marking the third individual linked to an alleged scheme involving AI chip fraud and the circumvention of U.S. export bans 1

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. Lim faces accusations of conspiring with Alan Wei Zhaolun, former chief executive, and Aaron Woon Guo Jie, head of sales, to mislead Dell Technologies about the true end-user of servers purchased from the U.S. supplier in 2024 4

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. The trio allegedly falsely represented that Aperia International would be the end-user when it was not, with the equipment subsequently exported to Malaysia, though authorities remain uncertain whether Malaysia was the final destination 2

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Nvidia Chips at the Center of Export Control Violations

Singapore Home Affairs Minister K Shanmugam confirmed in March last year that authorities determined the servers involved in the case may contain Nvidia chips, which are critical for artificial intelligence and high-performance computing 3

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. The servers were supplied by Dell Technologies and Super Micro Computer to Singapore-based companies before being rerouted 1

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. This investigation forms part of a broader crackdown on the illegal movement of advanced Nvidia chips through intermediaries in Singapore to China, bypassing U.S. export restrictions implemented in 2022 amid national security concerns that the technology could be used for military purposes 4

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Singapore's Role in Nvidia's Global Revenue Raises Questions

The case highlights a significant discrepancy in Singapore's position within Nvidia's global operations. In 2024, Singapore was Nvidia's second-biggest market after the United States, accounting for 18% of its total revenue in its latest fiscal year, according to a February 2025 filing by the chipmaker 1

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. However, Singapore authorities revealed that only 1% of Nvidia chips physically came to Singapore to be deployed in its data centers 5

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. Nvidia classified revenue by the geographical location of their customers' headquarters in its filing for the 2026 financial year, with sales in the United States, Taiwan, and China accounting for 98% of its revenue 2

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. This gap between reported revenue and physical chip deployment suggests Singapore may have served as a transit point for smuggling AI technology to China.

Broader Implications and Connected Cases

The charges against Jenny Lim, who is currently out on bail of S$350,000 (US$272,300), come after Wei and Woon were first charged in February 2025 following joint raids by the Singapore Police Force and Singapore Customs that resulted in nine arrests 4

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. The crackdown intensified following a U.S. probe into possible export control violations after Chinese AI firm DeepSeek launched a free AI tool in January 2025 that wiped around US$1 trillion off the value of U.S. tech stocks 4

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. Separately, three people associated with Super Micro Computer, including its co-founder, were charged in the United States in March with helping to smuggle at least $2.5 billion of U.S. AI technology to China, violating export laws 1

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. The United States later approved the sale of Nvidia's second-most powerful H200 chips in January this year, with some conditions, signaling evolving export controls 3

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. Lim and her co-accused are scheduled for pre-trial conferences on May 22, as authorities continue investigating the full scope of the fraud conspiracy 4

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