According to a senior official, Singapore contributes only a small fraction to Nvidia Corp’s revenue as Washington investigates whether Chinese AI startup DeepSeek has been acquiring chips through the Southeast Asian nation. Tan See Leng, Singapore’s second minister for trade and industry, informed lawmakers on Tuesday that “the physical delivery of Nvidia products to Singapore accounts for less than 1% of the company’s total revenue” for the three-month period ending in October 2024. He noted that these products are primarily used by large enterprises and the government.
Tan explained that while Nvidia reported 22% of its sales for the August-October period as originating from Singapore, this figure reflects the location where customers receive their invoices. “It’s standard for global companies to centralize billing for their procured goods and services in specific hubs, but this is distinct from the actual shipping locations, according to our investigations,” he stated. The administration of former President Donald Trump is examining whether DeepSeek acquired advanced Nvidia semiconductors through intermediaries in Singapore, potentially bypassing US restrictions on chips used for AI applications, as reported by Bloomberg News. Nvidia has suggested it does not believe DeepSeek has violated export controls, while Singapore has confirmed that its customs and law enforcement agencies will continue to collaborate closely with US authorities. DeepSeek, based in Hangzhou, recently launched a chatbot named R1, which reportedly performs comparably to similar US tools, indicating that China may be further ahead in the AI race than previously thought. Some notable engineers have praised R1’s capabilities, and DeepSeek has highlighted the tool’s affordability and efficiency, leading competitors to speculate that it may have been developed using Western technology.
On Tuesday, Tan reiterated that Singapore’s customs authorities work closely with their international counterparts, including those from the US, to support investigations as needed. He emphasized that his government does not support businesses attempting to exploit their connections with Singapore to evade export controls imposed by other nations.
