The Aporia · California tech company owner arrested over alleged $300 million China chip-smuggling scheme

Greg Lui, 38, owner of California-based Earthmade Computer Inc., was arrested on charges related to smuggling over $300 million worth of US-made computer servers containing export-controlled graphics processing units (GPUs) to China from January 2023 to October 2024. Prosecutors allege Lui used false documentation and third countries like Malaysia as intermediaries in an attempt to bypass necessary US export licenses, facilitating the transfer of high-tech equipment for superintelligence computing purposes.

Written by AI on 2026-10-03, from this article's own text only (the story summary below draws on all the coverage).

Story summary

On October 1, Greg Lui, a 38-year-old tech CEO from San Gabriel, California, was arrested by federal agents on charges of smuggling more than $300 million worth of Nvidia AI chips to China in violation of U.S. export controls. Prosecutors allege that Lui, owner and founder of Earthmade Computers, worked with unnamed co-conspirators between 2023 and 2024 to send the restricted servers through third countries like Malaysia and Singapore to evade necessary US licenses. The FBI and Department of Commerce conducted a raid on Earthmade's headquarters in City of Industry, arresting Lui at gunpoint as he arrived for work.

Lui faces multiple charges including conspiracy to violate U.S. export controls, outbound smuggling, and money laundering, each carrying significant penalties if convicted. His arrest highlights ongoing concerns about the potential misuse of advanced American technology by China, which could aid its military capabilities. Similar cases have been prosecuted recently, such as one involving a co-founder of Super Micro Computer who faced similar charges in March but pleaded not guilty.

Written for “US-China Chip Smuggling Arrests” on 2026-11-03, grounded in this article and the 3 other(s) covering the same event.

📰 US-China Chip Smuggling Arrests

Politics · 4 article(s) covering the same event. Compare every outlet's account →

This article reads unscored and hedges 50% of its claims. Each row says how that neighbour differs.

Friendly-faced California tech CEO arrested by feds for allegedly hiding $300M Chinese secret Same event

New York Post

⚖️ Leans strongly right Hedges 8 of 28 claims Outlet record 66/100

US man arrested over alleged $300 million scheme to smuggle Nvidia AI servers to China Same event

South China Morning Post

Hedges 1 of 2 claims Outlet record 63/100

Man charged by US with illegally shipping Nvidia chips to China Same event

The Straits Times

Hedges 3 of 19 claims Outlet record 66/100

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Lui faces charges of conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling and conspiracy to commit money laundering.

framing: mixed · carried by 1 article(s) · first seen 2026-10-03

🔮 If convicted, he could face a maximum sentence of 20 years on the export-control conspiracy charge, 20 years on the money-laundering conspiracy charge and 10 years on the smuggling charge.

2026-10-03 · Times of India

California tech company owner arrested over alleged $300 million China chip-smuggling scheme · mixed framing

A California technology company owner has been arrested on charges of allegedly smuggling more than USD 300 million in export-controlled computer servers containing US-made graphics processing units (GPUs) to China, according to federal prosecutors. uncertain

owner → arrest → prosecutors

The US Department of Justice said Greg Lui, 38, also known as Yiu Kong Lui, was arrested after being charged in a three-count federal indictment. asserted

Lui → say → indictment

Lui, who owns City of Industry-based Earthmade Computer Inc., allegedly used third countries, false paperwork and freight-forwarding arrangements to send restricted technology to China without the required US export licences. uncertain

who → own → licences

According to the indictment, the alleged scheme operated between 2023 and 2024. uncertain

scheme → accord → 2023

Lui and his co-conspirators allegedly bought export-controlled servers through Earthmade and routed them to countries including Malaysia and Singapore, where the required US export licence was not needed, before arranging for the equipment to be re-exported to China. uncertain

equipment → buy → China

Prosecutors allege the servers contained high-end GPUs used for Super Intelligence (SI) computing. asserted

servers → allege → computing

Lui allegedly knew that the actual end users were in China while providing US manufacturers with documents showing permitted destinations and end users. uncertain

users → know → destinations

The indictment alleges that Lui and his associates used freight-forwarding companies to move the servers from the US to third countries before they were sent on to China. asserted

they → allege → China

From January to October 2024, Earthmade allegedly received more than $176 million from two Malaysia-based shipment companies. uncertain

Earthmade → receive → companies

In one instance cited by prosecutors, Lui placed an order in January 2024 for 27 servers worth about $7.6 million. asserted

Lui → cite → servers

The servers were shipped from Los Angeles to Kuala Lumpur, Malaysia. asserted

servers → ship → Lumpur

A subsequent email to a Malaysian government official allegedly indicated that the 27 servers had been transshipped to a China-based buyer. uncertain

servers → indicate → buyer

Lui faces charges of conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling and conspiracy to commit money laundering. asserted

Lui → face → laundering

If convicted, he could face a maximum sentence of 20 years on the export-control conspiracy charge, 20 years on the money-laundering conspiracy charge and 10 years on the smuggling charge. uncertain

he → convict → charge

The FBI, the Defence Criminal Investigative Service and the Commerce Department's Bureau of Industry and Security Office of Export Enforcement are investigating the case. asserted

FBI → investigate → case

The DOJ said the indictment contains allegations only, and Lui is presumed innocent unless and until proven guilty beyond a reasonable doubt in court. asserted

Lui → say → court

California tech company owner arrested over alleged $300 million China chip-smuggling scheme

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