US Investigates Apex Logistics for Smuggling AI Chips to China

The United States Bureau of Industry and Security is investigating Apex Logistics, a Singapore-based subsidiary of Kuehne+Nagel, for its suspected role in smuggling restricted AI chips to China. The probe focuses on 47 shipments from 2024 that allegedly contained AI systems manufactured by Super Micro Computer Inc. using Nvidia Corp hardware.

Investigators believe Apex Logistics used false documentation and complex routing to bypass export restrictions established in 2022. The suspected route moved hardware from Taiwan to the United States, then through Southeast Asia and Hong Kong before reaching mainland China. These rules were designed to prevent advanced AI hardware from benefiting the Chinese military.

Apex Logistics stated it is cooperating fully with the investigation and has implemented enhanced compliance procedures. Its parent company, Kuehne+Nagel, confirmed this cooperation but noted that the parent firm has not been contacted by authorities. Shares of Kuehne+Nagel fell following the announcement.

Nvidia Corp and Super Micro Computer Inc. have not been accused of wrongdoing in the matter. This investigation represents a potential first in U.S. efforts to hold transportation and logistics companies legally accountable for the illegal semiconductor trade.