US DOJ charges foreign nationals for allegedly exporting $10m sensitive AI microchips to China
By Joe Udo
CALIFORNIA (CONVERSEER) – United States authorities have arrested and charged two Chinese nationals over allegations they illegally exported tens of millions of dollars’ worth of sensitive microchips used in artificial intelligence (AI) applications to China.
In a press statement released Tuesday, the Department of Justice (DOJ) identified the suspects as 28-year-old Chuan Geng of Pasadena, California, and 28-year-old Shiwei Yang of El Monte, California. Geng, a lawful permanent resident, and Yang, described as an illegal immigrant who overstayed her visa, face charges under the Export Control Reform Act, a felony carrying a maximum sentence of 20 years in prison.
Geng surrendered to officials on Saturday and was released on $250,000 bail, while Yang was arrested the same day and is scheduled for a detention hearing on 12 August. Both are due for arraignment on 11 September, with no pleas entered at their initial court appearance on Monday.
Alleged Illegal Export Scheme
According to an affidavit filed with the complaint, between October 2022 and July 2025, Geng and Yang allegedly used their El Monte-based company, ALX Solutions Inc., to “knowingly and wilfully” export advanced graphic processing units (GPUs) to China without obtaining the required export licence from the U.S. Department of Commerce.
GPUs, which are specialised computer chips, play a critical role in AI-powered technologies, including self-driving vehicles and medical diagnostic systems. Officials noted that ALX Solutions was established shortly after the Commerce Department began enforcing licence requirements for exporting certain advanced microchips to China.
Investigators allege that ALX Solutions carried out at least 20 shipments through intermediaries in Singapore and Malaysia, commonly used transshipment points to conceal exports destined for China. In one December 2024 shipment, the company allegedly falsely declared regulated GPUs as non-restricted technology to evade U.S. export laws.
The DOJ revealed that ALX Solutions received “numerous payments” from companies in Hong Kong and mainland China, including a $1 million transaction from a China-based firm in January 2024.
Evidence and Ongoing Investigation
During their arrest, law enforcement agents seized the suspects’ phones and searched ALX Solutions’ office, allegedly uncovering incriminating communications discussing illegal shipments routed through Malaysia.
The investigation is being led by the FBI and the U.S. Department of Commerce’s Bureau of Industry and Security, with officials warning that the case underscores efforts to prevent sensitive U.S. technology from being illegally transferred overseas.
