California Man Arrested in $300M AI Chip Smuggling Ring to China
A California tech executive was arrested for allegedly running a $300 million smuggling network that routed advanced AI processors to China via Malaysia and Singapore.
A California resident has been arrested and charged with operating a smuggling network that funneled advanced artificial intelligence processors valued at over $300,000,000 to China. According to the U.S. Department of Justice, the high-end equipment was illegally routed through third-party nations including Malaysia and Singapore in direct violation of strict U.S. export controls.
The suspect, 38-year-old Greg Lui—also known as You Kong Lui—resides in San Gabriel and owns the technology firm Earthmade Computer. Prosecutors stated that between 2023 and 2024, Lui orchestrated a global smuggling scheme utilizing his company as a corporate front to bypass federal regulations.
According to the indictment, the operation involved purchasing export-controlled items and shipping them initially to Malaysia and Singapore, jurisdictions that did not require specific U.S. Department of Commerce export licenses for those transits. Once the sensitive cargo arrived in these transit hubs, it was systematically re-exported to its ultimate destination in China.
Lui faces multiple felony counts, including conspiracy to violate export regulations, smuggling, and money laundering. He is scheduled to appear in a Los Angeles federal court.
This criminal case underscores Washington's intensifying federal enforcement efforts to block Beijing's access to advanced American computing technology. U.S. authorities aim to curb the transfer of sophisticated microprocessors capable of enhancing China's military capabilities and strategic technological advantage.
