Singapore Urges Compliance with Export Controls Amid DeepSeek Chip Controversy
- tech360.tv
- Feb 3, 2025
- 2 min read
Singapore's Ministry of Trade and Industry (MTI) has issued a statement emphasising the importance of U.S. companies adhering to export controls and local laws. This comes in the wake of questions surrounding the chips utilised by China's DeepSeek for its AI model. The markets were unsettled after DeepSeek claimed superiority over OpenAI at a fraction of the training cost, leading to scrutiny over the origin of the semiconductors used in DeepSeek's R1 reasoning model due to U.S. restrictions on exporting advanced AI chips to China.
According to a report by Bloomberg, U.S. officials are investigating whether DeepSeek procured advanced semiconductors from chipmaker Nvidia through third parties in Singapore. Nvidia has stated that the chips used by DeepSeek are fully compliant with export regulations. However, DeepSeek has not responded to CNBC's request for comment on the matter.
MTI's statement highlighted the expectation for U.S. companies, such as Nvidia, to comply with export controls and domestic legislation. The ministry affirmed its commitment to upholding the rule of law and taking decisive action against any violations. Nvidia, in its third-quarter results, disclosed that Singapore contributes nearly 22% of its revenue, with most shipments associated with Singapore revenue destined for locations outside the country.
Citing Nvidia's clarification, MTI reiterated that there is no indication that DeepSeek acquired export-controlled products through Singapore. The ministry underscored Singapore's role as an international business hub, where major U.S. and European companies operate significantly. Nvidia explained that many customers utilise their Singapore entities to purchase chips for products intended for the U.S. and other Western countries.
Singapore's Ministry of Trade and Industry stresses compliance with export controls for U.S. firms amid DeepSeek chip controversy.
Questions arise over the origin of semiconductors used by DeepSeek for its AI model, prompting investigations by U.S. officials.
Nvidia confirms that the chips used by DeepSeek are export-compliant, dismissing concerns over procurement via Singapore.
Source: CNBC
