US probes Apex Logistics over suspected Nvidia chip shipments to China

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US authorities are investigating Singapore based Apex Logistics over suspected shipments of restricted Nvidia artificial intelligence hardware to China, putting freight forwarders and other transportation providers under sharper scrutiny over their role in semiconductor supply chains.

The investigation is examining whether Apex transported AI systems manufactured by Super Micro Computer containing advanced chips from Nvidia in violation of US export restrictions, according to people familiar with the matter. The inquiry is reportedly being led by the US Commerce Department’s Bureau of Industry and Security.

If enforcement action follows, the case could become the first significant US action against a transportation company for allegedly participating in the illegal movement of restricted semiconductor equipment to China.

Apex, which is owned by Swiss logistics group Kuehne+Nagel, said it was aware of US government interest in a small number of shipments handled during 2024 that may have involved equipment ultimately forwarded to prohibited destinations. The company said it was cooperating fully and remained committed to complying with applicable regulations.

Kuehne+Nagel said its subsidiary was cooperating with the investigation, while adding that the parent company itself had not been contacted by authorities.

The investigation potentially widens the compliance burden surrounding advanced semiconductor exports beyond manufacturers, distributors and technology traders.

US restrictions on advanced AI chips destined for China date from 2022 and have been tightened and modified several times since. The controls are intended to prevent advanced computing equipment from supporting Chinese military and intelligence capabilities.

For freight forwarders, the issue is increasingly operational. A shipment described as computer servers can contain technology worth millions of dollars and subject to strict destination and end user controls. Hardware can also change hands several times and pass through multiple countries before reaching its final customer.

That creates a difficult question for logistics providers: how far must a forwarder look beyond the shipper named on its transport documents?

The Apex investigation suggests US authorities may expect transportation companies handling sensitive technology to identify warning signs in routing, consignee information and ultimate destinations rather than relying solely on documents supplied by customers.

Singapore already operates controls covering strategic goods, including requirements for permits covering certain exports, transshipments and transit movements. Singapore has also publicly said companies operating there should not use the country to evade obligations imposed under other jurisdictions.

The US investigation comes as Taiwanese authorities pursue a separate case involving advanced Nvidia B300 systems allegedly moved to China through several Asian trading routes.

Taiwanese prosecutors this week indicted nine people in connection with the alleged illegal sale and export of high end AI servers. Those charged include a manager at Nvidia’s Taiwan operation and individuals linked to Super Micro.

Prosecutors allege that 130 B300 servers were obtained after documentation and arrangements were used to make it appear that the equipment would remain at a data centre in Taiwan. Of those systems, 74 ultimately reached Chinese customers while another 56 were intercepted before export.

The routing illustrates the challenge facing customs authorities and freight companies. Prosecutors said 50 of the 74 servers were transported through Indonesia, 16 went directly to China and eight were routed first through Japan and then Hong Kong before reaching mainland China.

Taiwanese prosecutors allege that participants used false end user information and other measures to circumvent controls. They are seeking prison sentences of up to five years for several defendants. Nvidia has not been accused as a company of wrongdoing, while Super Micro has said it cooperated with Taiwanese authorities.

The two cases highlight a growing risk for international freight networks as governments try to close indirect routes used to move controlled technology.

Advanced servers can travel through established air cargo and multimodal logistics hubs without appearing physically unusual. Unlike weapons or hazardous cargo, the compliance risk lies largely in the technology inside the shipment, its specifications, end user and destination.

For global forwarders, that could place greater importance on customer screening, end user verification, commodity descriptions and unusual transshipment patterns.

The Apex case therefore reaches beyond one forwarder. If US authorities ultimately bring an enforcement action against a logistics provider, carriers and forwarders handling semiconductor equipment may have to reassess where transportation services end and export control responsibility begins.