Taiwan's Liberty Times cites US intelligence on alleged Ministry of State Security semiconductor team

Report claims direct oversight by China's spy chief; third-country shell companies allegedly used to bypass export controls

US Justice Department says no conclusion reached on espionage; China denies allegations

Jensen Huang and Alice Huang [Reuters/Yonhap]
Jensen Huang and Alice Huang [Reuters/Yonhap]

Alice Huang, the Chinese national reported to have had an extramarital relationship with former Nvidia CEO Jensen Huang, may have been an operative in a Chinese intelligence unit dedicated to acquiring semiconductors, according to new allegations. She is said to have been tasked not only with circumventing US export controls to obtain advanced chips, but also with using her relationship with Jensen Huang to pressure the US government into easing semiconductor export restrictions on China.

Taiwan's Liberty Times, citing US intelligence sources, reported Friday that the Chinese Communist Party has been running a covert pan-government organization to counter the United States in the AI technology race.

The newspaper said the CCP's Central General Office established a dedicated unit aimed at countering US advances in AI and securing access to advanced semiconductors.

The organization is said to include the CCP's Central Science and Technology Commission, the Cyberspace Administration of China, the Ministry of Commerce, the Ministry of State Security, the United Front Work Department, and People's Liberation Army-affiliated departments.

Its reported activities include building public opposition to data center construction in the United States and lobbying to ease semiconductor export restrictions.

The Liberty Times also alleged that the group sought access to global semiconductor supply chains not linked to China and worked to stoke internal divisions within American society.

Within this organization, China's Ministry of State Security is said to have formed a dedicated unit — referred to as a "semiconductor team" — focused specifically on chip acquisition.

The Liberty Times reported that Alice Huang, known in Chinese as Huang Le, is a member of this semiconductor team.

Her alleged mission was to acquire advanced semiconductors and high-performance servers while evading US export controls.

To that end, she is said to have set up shell companies in third countries outside China and used them to purchase advanced US-made chips and servers.

Her approach to former CEO Jensen Huang is alleged to have been part of this operation.

Alice Huang is accused of leveraging her personal relationship with Jensen Huang to influence him to lobby the US government for a relaxation of semiconductor export restrictions targeting China.

The newspaper also analyzed that the operation sought to exploit Nvidia's own financial interest in easing China restrictions, given that looser export controls would expand the company's sales in the Chinese market.

The Liberty Times said US authorities had also obtained information indicating that Alice Huang operated under the direct command of Chen Yixin, director of China's Ministry of State Security.

The report further alleged that the Ministry of State Security has numerous female operatives carrying out missions similar to Alice Huang's, with these individuals said to be active at various levels within major US technology companies.

Their purpose, the newspaper said, is both to counter US semiconductor export controls and to exert influence over Western-led supply chains and policy decisions.

"This is the threat that the entire democratic camp must be most on guard against," the Liberty Times said. "It shows that this kind of infiltration has already reached our doorstep."

Earlier US media reports had alleged that Alice Huang used her relationship with Jensen Huang to facilitate the diversion of at least $7.5 billion worth of Nvidia AI chips to Chinese companies in circumvention of export controls.

The US Justice Department has maintained a cautious stance on the espionage allegations.

Attorney General Todd Blanche said at a press conference in Washington on Thursday (local time) that the FBI is investigating Alice Huang on suspicion of espionage.

He added that neither he, the Justice Department, nor the FBI director had yet reached a conclusion on whether Alice Huang had spied on behalf of the Chinese government.

Opinion is also divided within the US intelligence community. According to CNN, some intelligence officials believe the information gathered so far is insufficient to conclude that Alice Huang deliberately passed information to China.

The Chinese government has denied the allegations. China's Ministry of Foreign Affairs earlier rebuffed the espionage claims against Alice Huang, calling them an attempt to smear China with baseless accusations.

Taiwan's authorities are cooperating with the United States in investigating the matter. Taiwan's Executive Yuan confirmed Thursday that a multinational cooperative investigation related to Alice Huang is underway.

Taiwan's immigration authorities have revoked Alice Huang's entry permit and barred her from visiting the island.

Nvidia is also conducting its own inquiry. On Sunday, Nvidia's board announced it was launching an independent investigation with outside legal counsel, while stating there is currently no evidence to suggest that national security information or company secrets have been leaked.

Jensen Huang stepped down as Nvidia's CEO and board member on Thursday, after acknowledging the extramarital relationship with Alice Huang and amid subsequent reports of additional inappropriate relationships.

Nvidia named Chief Financial Officer Colette Kress as interim CEO and began the search for a permanent successor.

The allegations are intertwined with broader US policy on semiconductor exports to China.

In January, the US Commerce Department changed its approach to export license applications for certain AI chips, including Nvidia's H200, shifting from a blanket denial policy to a case-by-case review process.


kwater@heraldcorp.com