Four U.S. agencies backed listing Megaspeed after more than $4 billion in chip purchases
Key Facts
U.S. Treasury Secretary Scott Bessent said his department, the Defense Department, the State Department and the Office of the U.S. Trade Representative had for months supported adding Megaspeed to the Commerce Department’s Entity List, in a dispute within the administration over the risks of advanced chips reaching China. The Commerce Department has authority to administer the list, despite the four agencies’ support for the listing, Reuters reported. Bessent told The Associated Press: "The Commerce Department owns the decision, and you should ask it about its internal procedures." He said questions about the internal process should be directed to the department that administers the list. The case brings into focus the overlap between trade policy and national security concerns over advanced semiconductors.
The Commerce Department’s Entity List is a U.S. trade tool targeting entities Washington says are linked to China and pose national security risks, Reuters reported. According to The Associated Press, Megaspeed reportedly bought more than $4 billion worth of advanced semiconductors from Nvidia, while Nvidia chips reached Chinese companies through firms including Megaspeed. The report does not specify the period covered by those purchases. That puts the scale of the company’s purchases at the center of the dispute over its listing, while the account of the chips’ route remains attributed to reports. Megaspeed faced allegations last year that it illegally shipped advanced Nvidia computing chips to China, but said in December there was "no evidence" those exports had taken place, according to The Associated Press.
The Commerce Department’s Bureau of Industry and Security began investigating Megaspeed International in 2024, then referred the investigation to the Justice Department, The Associated Press reported. The department’s National Security Division is examining whether Megaspeed violated export control laws, and the investigation includes scrutiny of Alice Huang. The inquiry comes as chip export decisions and reviews of trading partners face growing political scrutiny. Bessent said the administration was working to close the "leakage" in the chip export system and raised questions about how closely Nvidia scrutinized its partner, Reuters reported. The remark puts responsibility for controlling chip routes under discussion between government agencies and companies that deal in advanced chips.
In Singapore, the Ministry of Home Affairs said police and customs began an independent investigation in February 2025 into Megaspeed and its officials, over suspicions involving false declarations about server purchases. The ministry said the Singapore investigation was not initiated at another country’s request, and that authorities were examining whether servers shipped through Singapore to Malaysia were later diverted in breach of the declarations. Authorities said they found insufficient evidence that Alice Huang committed offenses involving potentially inaccurate declarations, but concluded that she knowingly provided inaccurate information to reduce her role. The investigation into Megaspeed and six other people remains ongoing as of 12 November 2026, the ministry added. Huang received a stern warning, was barred from re-entering Singapore, and left the country on the day her passport was returned, 26 February 2026.
Bessent said the executive branch has the authority needed to enforce export controls, responding to a question about whether Congress needed to act. He added: "We have all the authority we need. All that is required is to enforce it." The message shifts the debate toward enforcement of existing rules, while lawmakers focus on reviewing how the matter is being handled. Senator Tim Scott, chairman of the Senate Banking Committee, asked Commerce Secretary Howard Lutnick to testify on Thursday, Reuters reported. The chairman of the House Foreign Affairs Committee also requested a hearing on 2 December on chip smuggling and what he described as private companies’ interference in export control policy and investigations, according to The Associated Press.
In Congress, Senator Ron Wyden and Representative Richard Neal also asked Lutnick to preserve all records related to decisions on Nvidia chip exports pending an investigation, The Associated Press reported. The request includes a review of government decisions that have become a focus of the dispute between Bessent and the Commerce Department. The moves come amid broader repercussions for Nvidia, as The Associated Press said the company’s ties to Megaspeed featured in the resignation of its CEO, Jensen Huang, amid allegations about his relationship with company official Alice Huang. In trading, EL7 data showed Nvidia shares closed at $162.85 on 13 November 2026. The data provided does not include a documented share price for AMD or TSM in the same session.