Nvidia founder's affair scandal puts spotlight on Singapore as a chip trading hub

Jensen Huang, founder of the US chipmaker Nvidia, stepped down from the company on Thursday after admitting to an affair. According to reports, he was involved with Alice Huang, who ran the Singapore data centre company Megaspeed, one of Nvidia's major buyers. The case has focused attention on Singapore as a global chip hub and a location for alleged illicit trade.

Singapore's role in the chip market

For decades Singapore has cultivated an image as an open, business-friendly economy with access to both US and Chinese markets. Last year it was the second-largest billing centre for Nvidia worldwide, accounting for nearly a fifth of the company's earnings. Yet less than 1% of that related to chips that actually entered Singapore, as the island is where many Asian firms place orders that are then shipped elsewhere.

Since 2022, the US has restricted exports of advanced semiconductors to China, and officials have worried that Chinese firms could obtain them via third countries. Megaspeed became the biggest buyer of Nvidia chips in South East Asia and is suspected of giving Chinese companies backdoor access through data centres in Malaysia, Indonesia and Thailand. The company says it has always acted lawfully.

The investigation

Singapore's government said that since February 2025 it has been examining whether Megaspeed and other firms made false declarations about servers. Authorities say they asked US counterparts for help several times but received limited information. Alice Huang was investigated over possible involvement in suspected fraud; with "insufficient evidence" found, she was allowed to leave in February this year. No charges have been brought in the case.

A political dilemma

Analysts say Singapore's balancing act between the US and China is becoming harder: Beijing may question why it is probing US-related restrictions, while Washington could see its statement as shifting blame onto the US.