How Smugglers Get Expensive Memory Chips to China from South Korea

What happened: Smugglers are moving high-bandwidth memory chips from South Korea to China by packaging them on plates with cheap server processors that fall below the U.S. export restriction threshold. Why it matters: The rules determine a package's computing power by its server processor rather than its memory chips, a loophole that shows how porous U.S. restrictions on AI chip shipments to China can be. Coverage: 3 outlets in 24h

Smugglers are moving high-bandwidth memory chips from South Korea to China by packaging them on plates with cheap server processors that fall below the U.S. export restriction threshold.

The rules determine a package's computing power by its server processor rather than its memory chips, a loophole that shows how porous U.S. restrictions on AI chip shipments to China can be.