Investigation overview
U.S. government investigators are examining Singapore-based Apex Logistics on suspicions that the company transported Nvidia (NASDAQ:NVDA) artificial intelligence chips to mainland China, according to a report. The probe could mark the first time U.S. authorities take action against a transportation firm over alleged participation in an illicit semiconductor supply chain.
The inquiry is being led by the Commerce Department's Bureau of Industry and Security and centers on shipments handled in 2024. Authorities are specifically looking into whether Apex moved AI systems manufactured by Super Micro Computer (NASDAQ:SMCI) in ways that violated U.S. export restrictions, the report said.
Shipment patterns under review
Investigators have identified 47 Apex consignments as part of the review. The suspected routing pattern cited in the report involves Nvidia-powered servers traveling from Taiwan to the United States, then being forwarded to Southeast Asia and Hong Kong before ultimately entering mainland China.
The probe highlights the role freight and logistics companies can play in complex supply chains that regulators say have been used to circumvent U.S. controls on advanced AI hardware. Washington has limited exports of such chips to China since 2022 on national security grounds.
Responses from companies
Apex acknowledged awareness of U.S. concerns tied to a small number of shipments and said it is cooperating fully with the investigation. The firm's Swiss parent, Kuehne & Nagel (BS:KNINz), stated that the subsidiary is cooperating and that Kuehne & Nagel itself has not been contacted by authorities, the report said.
Nvidia said it works with established partners to ensure sales comply with export controls and that its due diligence has helped identify suspected attempts to evade U.S. rules.
Context and next steps
The Commerce Department unit leading the probe will continue to examine the identified shipments and any relevant documentation or transactional records. The investigation focuses on actions taken in 2024 and their alignment with U.S. export restrictions. Beyond the companies named, the inquiry draws attention to broader compliance and enforcement challenges faced by freight-forwarding firms and hardware vendors operating across multiple jurisdictions.