(NewsNation) — Two Chinese nationals in California have been charged with illegally shipping millions of dollars’ worth of artificial intelligence microchips to China, according to the Department of Justice.

Chuan Geng, 28, and Shiwei Yang, 28, are accused of exporting Nvidia H100 general processing chips and other technology to China from October 2022 through July 2025 without the required licenses.

According to the affidavit, the pair operated through their company, ALX Solutions, based in El Monte, California. More than 20 shipments were sent via freight forwarding companies in Singapore and Malaysia, which are common transshipment hubs used to conceal final destinations like China, according to the DOJ.

Nvidia’s H100 is considered the most advanced graphics processing unit on the market, according to the complaint. The chips are specifically designed for AI applications, including self-driving cars and medical diagnostics.

In January 2024, ALX received a $1 million payment from a China-based company, along with other payments from entities in Hong Kong and mainland China. None of the funds came from the listed forwarding companies, the DOJ said.

In a statement to Reuters, Nvidia emphasized its commitment to export compliance:

“This case demonstrates that smuggling is a nonstarter,” a spokesperson said. “We primarily sell our products to well-known partners… who help us ensure all sales comply with U.S. export control rules.”

Nvidia added that diverted products receive “no service, support or updates.”

Geng and Yang were charged with violating the Export Control Reform Act, a felony that carries a potential sentence of up to 20 years in federal prison. Yang, who had overstayed her visa, was also found to be living in the U.S. illegally.

The pair appeared in federal court in Los Angeles on Monday. Geng, a permanent U.S. resident, was released on $250,000 bond. Yang remains in custody pending a detention hearing scheduled for Aug. 12.