Two Los Angeles County residents face federal charges for allegedly illegally exporting tens of millions of dollars’ worth of artificial intelligence microchips to China over nearly three years. The case highlights ongoing U.S. efforts to prevent sensitive AI technology from reaching China amid growing geopolitical tensions over semiconductor exports.
What you should know: Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, were arrested Saturday for allegedly violating federal export controls through their company ALX Solutions Inc.
- Both are Chinese nationals, with Geng holding lawful permanent resident status and Yang having overstayed her visa.
- They operated an El Monte-based technology company specializing in high-powered central processing units and graphics processing units for AI applications.
- The microchips they exported are capable of being used in AI development for self-driving cars and medical diagnosis systems.
The scheme: Federal prosecutors allege the pair “knowingly and willingly” circumvented export regulations by routing shipments through third-party countries to conceal their final destination.
- ALX Solutions was involved in at least 20 unlicensed or mislabeled chip shipments to China after the Commerce Department began requiring licenses for these “sensitive technologies.”
- Shipments went from the U.S. to freight-forwarding companies in Singapore and Malaysia, which prosecutors say are commonly used as transshipment points to hide illegal shipments to China.
- The company received payments from companies in Hong Kong and China that were not the stated purchasers of their goods.
Key evidence: Law enforcement seized two phones from the ALX Solutions office last week that allegedly contained “incriminating” communications about evading export laws.
- The communications specifically discussed shipping chips through Malaysia to circumvent federal regulations.
- Export and business records showed discrepancies between stated buyers and actual payment sources.
- The defendants falsely labeled GPUs as licensed despite never applying for or obtaining Commerce Department licenses.
Legal consequences: Both defendants are charged under the Export Control Reform Act, a 2018 law that strengthened federal controls on emerging technologies.
- Violations can carry a maximum sentence of 20 years in federal prison.
- Geng was released Monday on $250,000 bond, while Yang has a detention hearing scheduled for August 12.
- Arraignment for both is set for September 11.
Why this matters: The case represents the latest enforcement action in the U.S. government’s broader strategy to prevent China from accessing advanced semiconductor technology that could enhance its military capabilities or AI development programs.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...