How the Jensen Huang scandal created a headache for business-friendly Singapore

A major scandal involving Nvidia founder Jensen Huang and a suspected Chinese spy based in Singapore has cast a spotlight on the city-state's success as a global chip hub - and a location for alleged illicit trade. On Thursday, Huang stepped down from the US chip giant after admitting he had an affair.

He was reportedly involved with a woman named Alice Huang, who ran Singaporean data centre company Megaspeed, a major buyer of Nvidia's chips. For decades, Singapore has painstakingly cultivated a reputation as an open, business-friendly economy offering easy access to both the US and Chinese markets.

Singapore was the second-largest billing centre globally last year for Nvidia, accounting for nearly a fifth of what the US chip giant earns. But notably, less than 1% of its earnings were for chips that actually entered Singapore, as the island acts as a hub for many Asian companies to place orders and send them elsewhere.