Nvidia-Megaspeed saga could squeeze Singapore's room in chips space, slow things for firms: Analysts

Singapore

An extramarital affair has renewed global scrutiny on chip giant Nvidia and its Singapore-based client Megaspeed, which is suspected of helping China gain access to advanced semiconductors from the US.

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14 Nov 2026 08:41AM

SINGAPORE: The ongoing chips saga involving Nvidia and Megaspeed could soon make things trickier for Singapore in the semiconductor space, observers told CNA.

Mr Matthias Hendrichs, a Singapore-based adviser to AI companies, noted that Singapore has deep ties with both the US and China, and authorities in Singapore have said companies have to manage the risk of foreign rules that apply to them.

“The tricky part is that Washington increasingly wants to know who's using the chips, even when they're sitting in a data centre outside China,” he said on Thursday (Nov 12). 

“Singapore can keep doing business with both sides, but on this particular technology it’ll have less room to manoeuvre.”

The experts' comments come as controversy continues to swirl around Nvidia, days after the chip giant first launched a probe into whether former chief executive Jensen Huang was targeted in a foreign intelligence operation.

The New York Times had earlier reported that Mr Huang had an extramarital relationship with Alice Huang, a former executive of Singapore-based tech firm Megaspeed. US authorities’ investigations into Ms Huang previously concluded she was acting as a Chinese intelligence asset.

Megaspeed was suspected of helping Beijing to gain access to advanced semiconductors from the US, which are barred from being shipped to China.

Associate Professor Chong Ja Ian, of the National University of Singapore's political science department, noted that the Nvidia-Megaspeed case is not the only one relating to Singapore.

Five people have been charged in Singapore over an alleged fraud conspiracy linked to Nvidia chips. 

Nine people were arrested during raids by Singapore authorities after media reports claimed that intermediaries in Singapore were involved in the illegal movement of Nvidia chips to China, bypassing US export controls.

“These incidents add to a perception of 'Singapore washing', creating an impression where seemingly dubious commercial activity can take place in Singapore – whether to do with semiconductors or other matters,” he told CNA on Friday.

But Dr Chong also pointed out that while Singapore has said it does not implement unilateral export controls imposed by foreign jurisdictions, this does not mean it is unable to, which are "very different" and is a distinction to note. 

SINGAPORE’S STANCE

Singapore has repeatedly said it does not enforce unilateral export controls imposed by other countries, and expects companies operating here to take such regulations into account in their international business activities.

“Singapore does not condone companies using their association with Singapore to circumvent or violate other countries’ export controls through fraud or dishonest practices," the Ministry of Home Affairs (MHA) said on Thursday.

"Our approach is clear. Singapore will conduct its own investigations independently, in accordance with our laws and based on the evidence available."

Regarding Megaspeed, MHA said police investigations into the company and six other individuals have been ongoing since February 2025.

At the time, Coordinating Minister for National Security K Shanmugam said that investigations were not based on any request from any country or sovereign entity.

The suspected offences related to the purchase of servers and whether the servers had been routed to another destination after being exported to Malaysia, contrary to declarations made in Singapore.

Authorities in Singapore sought information from Supermicro, a US-based supplier of servers, but the company provided limited cooperation, said MHA, adding that it also asked US authorities for assistance.

In February this year, the police concluded there was insufficient evidence to establish that Ms Huang had committed any offences relating to the possible inaccurate declarations for which Megaspeed was being investigated.

She was issued a stern warning and barred from re-entering Singapore after police assessed that she knowingly provided inaccurate information to downplay her role in Megaspeed, and left Singapore on Feb 26, 2026.

MORE PRESSURE AND SCRUTINY?

Mr Huang on Nov 12 stepped down from his roles at Nvidia after reports of another affair with a married executive in the company emerged. Later that day, allegations surfaced of Mr Huang having a third extramarital affair with a second Nvidia employee. 

Mr Hendrichs told CNA that Mr Huang's departure is unlikely to have any effect on Singapore's semiconductor industry.

However, analysts said ongoing developments with Nvidia and Megaspeed may lead to more pressure and scrutiny on Singapore from the US and from chip suppliers.

Washington will probably want Singapore to trace shipments and find out who placed the order, where the servers end up and who is actually using them, Mr Hendrichs said.

The US can also ask for more paperwork before approving chip sales, or even cut off specific companies from US technology.

“I think (the US will) start with individual companies and deals,” he said. “But if these cases keep coming up, I can see them looking at tighter rules for the whole (Southeast Asian) region.”

Suppliers may also want to know where their chips are going and what they will be used for. That could slow things down, including for legitimate companies, he added.

Singapore Management University Associate Professor of Law Liu Han-Wei also said he expects greater US pressure on third-country chip hubs such as Singapore. 

Reuters on Friday reported that Congressional Republicans are putting pressure on their colleagues to pass at least four Bills on chip exports.

One of these is the Remote Access Security Act, which would give the US Commerce Department the tools to stop Chinese firms from renting overseas data centres to access Nvidia chips. 

Assoc Prof Liu said that if enacted, the Remote Access Security Act would extend US export control authority to certain forms of remote access, potentially affecting Singapore's cloud and data centre economy and physical chip shipments.

That could also affect the Johor-Singapore Special Economic Zone as Johor attracts more data centre investments, he added.

In the near term, businesses and supply chains are likely to be affected by more due diligence, verification and paperwork, rising compliance costs and slowing transactions, said Assoc Prof Liu, who is also deputy director of SMU's Centre for Digital Law.

“Uncertainty over technology access may also influence where companies invest and deploy staff,” he said, adding that whether partner governments tighten control or companies become more cautious remains to be seen.

On that point, Mr Hendrichs said the trading side of Singapore’s chip industry is more at risk than the manufacturing side.

“Companies make, package and test chips here, and that's taken a long time to build. One case won't change that,” he said.

Dr Chong said the US may have more reason to act if more information comes to light, following the upcoming Congressional hearings on the Nvidia case.

He added that restrictions from other parties could also place limits on Singapore firms, citing how Taiwan is currently mulling tighter restrictions and more stringent screening on semiconductor exports.

Source: CNA/an(ml)