Two Chinese nationals — one of whom is residing in the United States illegally — are facing serious federal charges for allegedly smuggling advanced U.S. microchips designed for artificial intelligence applications to China in violation of U.S. export laws, the Department of Justice announced.

Chuan Geng, of Pasadena, California, and Shiwei Yang, an illegal immigrant from El Monte who overstayed her visa, have been charged under the Export Control Reform Act. If convicted, they each face up to 20 years in federal prison.

According to the federal affidavit, the pair operated an El Monte-based business, ALX Solutions Inc., from October 2022 to July 2025. The company allegedly exported tens of millions of dollars’ worth of sensitive AI-related GPUs and high-performance microchips to China without the required licenses from the U.S. Department of Commerce.

Rather than ship the items directly, Geng and Yang allegedly routed their exports through Singapore and Malaysia — countries frequently used as transshipment hubs to mask illegal activity. These shipments were also paid for by companies based in China and Hong Kong, not by the entities listed on export records.

One shipment in December 2024, along with more than 20 others, included chips described by federal investigators as “the most powerful GPU chip on the market”, designed specifically for cutting-edge AI functions, such as autonomous vehicles, diagnostic tools, and other military-adjacent or sensitive technology.

Incriminating evidence was reportedly found on the pair’s mobile devices, including messages about using Malaysia to circumvent export regulations.

Yang was arrested on Saturday, while Geng turned himself in later the same day. The case is being led by Assistant U.S. Attorneys Colin S. Scott, Joseph Guzman, and Jenna Long of the Central District of California, with support from the National Security Division’s Counterintelligence and Export Control Section.

“This case underscores the ongoing threat posed by foreign actors seeking to undermine U.S. technological advantages,” said one DOJ official familiar with the investigation.

Authorities have not disclosed whether additional arrests or charges may follow.