FBI nabs US tech exec accused of smuggling $300M in AI chips to China, tell me about this news today
02-10-2026
A California tech company executive has been arrested on federal charges for allegedly orchestrating an illicit pipeline to smuggle more than $300 million worth of export-controlled AI hardware to China.
InshortsThe Defendant and the OperationThe Accused: Greg Lui (also known as Yiu Kong Lui), 38, of San Gabriel, California, owner and CEO of Earthmade Computer Inc., based in City of Industry, California.
TVC NewsThe Smuggled Tech: High-end computer servers housing advanced graphics processing units (GPUs), including Nvidia AI chips such as the H100. These chips are strictly regulated under U.S. export controls due to their critical role in training large AI models and their potential military and strategic computing applications.
Courthouse News+ 1The Scheme: Between 2023 and 2024, Lui allegedly purchased servers containing U.S.-manufactured GPUs from domestic suppliers and shipped them to intermediate destinationsprimarily Singapore and Malaysiausing falsified documentation and front entities. From there, the shipments were rerouted into China without the necessary export licenses from the U.S. Department of Commerce.
The Straits Times
Federal prosecutors unsealed a three-count indictment charging Lui with:
Conspiracy to violate the Export Control Reform Act and Export Administration Regulations
TVC NewsOutbound smuggling of goods from the United States
TVC NewsConspiracy to commit money laundering
TVC News
If convicted on all counts, Lui faces up to 20 or more years in federal prison. The arrest highlights an intensifying crackdown by the U.S. Department of Justice and the FBI on illicit transshipment hubs attempting to circumvent sanctions on advanced American semiconductor technology.
The Straits Times