Singapore’s Ministry of Trade and Industry (MTI) has emphasized the importance of compliance with U.S. export controls, particularly in light of ongoing investigations surrounding the semiconductor supply chain for DeepSeek's advanced AI technology. The government agency's statement, released on Saturday, indicates a commitment to ensuring that U.S. companies operating in Singapore adhere to both U.S. export regulations and local laws.
The scrutiny stems from inquiries into whether DeepSeek acquired advanced Nvidia chips through third parties in Singapore, which would violate U.S. restrictions on exporting such technology to China. This investigation follows DeepSeek's claim that its large language model outperformed OpenAI's at a significantly lower training cost, creating ripples in the tech market.
U.S. officials are reportedly examining the circumstances surrounding DeepSeek's procurement of these semiconductors. A spokesperson for Nvidia assured CNBC that the chips utilized by DeepSeek are fully compliant with export regulations. Furthermore, Nvidia indicated that there is no evidence suggesting DeepSeek obtained any export-controlled products via Singapore.
"We expect US companies, like Nvidia, to comply with US export controls and our domestic legislation. Our customs and law enforcement agencies will continue to work closely with their US counterparts." – Singapore's Ministry of Trade and Industry (MTI)
MTI reiterated its commitment to upholding the rule of law, stating, "We have always upheld the rule of law, and acted decisively and firmly against individuals and companies that flout the rules." The agency's remarks highlight Singapore's position as a responsible player in international trade, particularly in the semiconductor sector.
In its latest financial disclosures, Nvidia reported that nearly 22% of its revenue derives from operations in Singapore, underscoring the city-state's status as an international business hub. Major U.S. and European firms maintain substantial operations in Singapore, further complicating the narrative surrounding export compliance.
"Singapore is an international business hub. Major US and European companies have significant operations here. Nvidia has explained that many of these customers use their business entities in Singapore to purchase chips for products destined for the US and other Western countries," – Singapore's Ministry of Trade and Industry (MTI)
Despite these assurances from Nvidia, questions persist regarding the origins of the semiconductors used in DeepSeek's R1 reasoning model. The situation remains sensitive as global supply chains for advanced technology come under increased scrutiny.
DeepSeek has not responded to requests for comment from CNBC, leaving many questions unanswered as the investigation unfolds. As local and international authorities continue to collaborate on these issues, the implications for companies operating at the intersection of cutting-edge technology and regulatory compliance remain profound.