Singapore’s Ministry of Trade and Industry denies claims of restricted Nvidia chips reaching DeepSeek

Singapore’s Ministry of Trade and Industry (MTI) has confirmed that no evidence has been found indicating that export-controlled Nvidia semiconductors were acquired by Chinese AI company DeepSeek through intermediaries in Singapore. The ministry issued the statement on Saturday (1 Feb) following reports of a US investigation into the matter. According to the statement, Nvidia has reviewed its shipments and reported no indications of any violations involving DeepSeek. “Nvidia has stated that there is no reason to believe that DeepSeek obtained any export-controlled products from Singapore,” MTI said. The scrutiny arose after the recent launch of DeepSeek’s R1 AI model, which sparked concerns over potential gaps in enforcing US export restrictions. US authorities, including the FBI, are currently investigating whether DeepSeek obtained Nvidia’s restricted H800 chips by routing them through intermediary countries like Singapore. Nvidia’s latest quarterly filings indicate that Singapore accounts for approximately 22% of its revenue. However, the company clarified that most shipments associated with Singapore revenue were delivered to other regions, and shipments directly to Singapore were minimal. Nvidia stated in its regulatory filings that “shipments to Singapore were insignificant.”

MTI acknowledged that Singapore is a major global business hub where many multinational companies have set up regional operations. Nvidia explained that many of its customers use Singapore-based business entities to purchase chips destined for markets such as the US and Europe. In its statement, MTI emphasised its commitment to ensuring compliance with international trade regulations. “We expect US companies, like Nvidia, to comply with US export controls and our domestic legislation,” the statement read. It also reaffirmed that Singapore’s customs and law enforcement agencies will continue collaborating closely with their US counterparts to ensure compliance and address any breaches if identified. MTI highlighted Singapore’s history of enforcing trade regulations, stating that it has consistently taken firm action against individuals and companies found to be in violation of the law. “We have always upheld the rule of law and acted decisively and firmly against individuals and companies that flout the rules,” the ministry stated. The US investigation focuses on whether Nvidia’s H800 chips, which were specifically designed to meet previous export restrictions but were later banned under stricter controls introduced in October 2023, reached DeepSeek. The expanded controls are part of broader efforts by the US to restrict China’s access to advanced semiconductors used in AI development. Although Singapore has not been identified as a major violation point, US officials are scrutinising the country’s role as an intermediary for global chip shipments. MTI’s statement reiterates that while no violations have been detected, Singapore remains committed to ongoing cooperation to ensure strict adherence to export regulations. The issue of intermediaries in global technology supply chains based in Singapore has drawn increased attention in recent years. For instance, Taiwan Semiconductor Manufacturing Company (TSMC) recently terminated its relationship with PowerAIR, a Singapore-based firm, after uncovering possible breaches of US export restrictions involving Huawei Technologies. As investigations continue, Singapore’s authorities have pledged ongoing cooperation with US agencies and assured that any evidence of non-compliance, if found, will be dealt with according to established legal processes.