Mumbai: Smuggling Of Hi-Tech Chip Raises Security Concerns
Alarm bells are ringing in intelligence circles after a consignment of banned hi-tech chips, which have multifaceted uses in drones and missiles, found its way into Mumbai. The shipment mysteriously bypassed the scrutiny at the Jawaharlal Nehru Customs House (JNCH) in the Nhava Sheva Special Economic Zone (SEZ) recently. This breach is creating serious security concerns, especially since the import of A100 and H100 chips used in drones and missiles is prohibited in India.
In view of this alarming development, Mumbai’s police force and other security agencies have been cautioned about the potential of swarm drone attacks on religious locations and busy marketplaces. This concern is heightened by the fact that trading such chips requires clearances from multiple high-security agencies, including the Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) Wing, the Defence Research and Development Organisation (DRDO), and the Department of Atomic Energy.
Documents have surfaced indicating that the imported consignment was not intended for the domestic tariff area (DTA), yet it managed to slip into Mumbai allegedly due to some officials’ lapses and possible collusion at the Nhava Sheva port. Following this intelligence, the Customs special intelligence and investigation branch has been directed to hold the questionable consignment pending further instructions.
An in-depth investigation revealed that the chipsets were imported into the Arshiya SEZ at Nhava Sheva port by a company named Shezar Web Technologies Pvt Ltd, which is based in Andheri. The supplier was identified as a US firm, Dataknox Solutions. The cargo was originally intended for export to Russia, according to the documentation and bills of lading. Given the ongoing trade sanctions between the US and Russia following the Ukraine conflict, the situation is particularly sensitive. These chips, if they had reached their intended destination, could have potentially fallen into the hands of terror organizations, according to a senior intelligence officer.
“It’s alarming that these dual-use chips were imported under false pretenses. The consignment evaded Customs checks,” commented the officer. The plan was to export the goods without any added value, possibly for money laundering by marking up their worth by 20% for Russian markets.
Officials from the JNCH suggest that importers are exploiting a loophole, claiming these items are not for Indian use but are intended for export from the SEZ directly to Russia, thus bypassing the need for SCOMET registration. Previously, the Arshiya SEZ has been scrutinized for instances of substituting export goods into the DTA with the help of complicit Customs officers.
Use of Hi-Tech Chips
These high-performance NVIDIA A100 Tensor Core GPUs are engineered to deliver unparalleled acceleration for some of the world’s most critical computational workloads. These chips are essential components for the most efficient elastic data centers, particularly for applications in AI and data analytics.
The H100 Tensor Core GPU is designed to connect and accelerate exascale workloads, enabling the solution of trillion-parameter language models with up to 30 times the speed of traditional systems. Such capabilities make these chips highly sought after for both legal and illicit activities.
The breach not only signals lapses in our security protocols but also underscores the urgent need for tighter controls and vigilant enforcement to prevent such high-risk materials from falling into the wrong hands. Authorities must take immediate steps to seal these loopholes and ensure that no stone is left unturned in safeguarding national security.
