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DOJ charges California CEO Greg Lui over $300M Nvidia chip smuggling to China

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GoKawiil Brief

The Department of Justice has arrested Greg Lui, also known as Yiu Kong Lui, owner of Earthmade Computer Inc., alleging he and unnamed co-conspirators smuggled more than $300 million in export-restricted Nvidia chips to China between 2023 and 2024. Prosecutors say the chips were routed through Malaysia and Singapore using falsified paperwork before reaching Chinese buyers, including the Chinese government. Lui faces charges of conspiracy to violate export control laws, outbound smuggling, and money laundering conspiracy, carrying a potential 20-year sentence.

Why It Matters

GoKawiil's interpretation of the reporting above, not reported fact.

The case adds to a growing pattern of enforcement actions targeting illegal routes for restricted AI hardware reaching China, following a similar indictment of nine people in Taiwan last month over Nvidia B300 GPU exports. It suggests U.S. authorities are intensifying scrutiny of transshipment schemes through third countries as a workaround to chip export controls, which could prompt tighter compliance requirements across the AI hardware supply chain.

Key Takeaways

Source: tomshardware.com — Etiido Uko, 2026-10-02

Published there as: “California tech CEO arrested, faces up to 20 years in prison for smuggling $300 million in Nvidia AI servers to China”

Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.