Taiwanese authorities have charged staff from Nvidia and Super Micro Computer in connection with an illegal AI chip export investigation.
Taiwanese authorities have indicted nine individuals, including employees from Nvidia and Super Micro Computer, for orchestrating the unauthorized export of advanced AI server technology to China. This marks the first prosecution of its kind involving the black-market trade of high-performance artificial intelligence hardware. The servers were equipped with Nvidia B300 chips subject to U.S. export controls, according to reporting by Reuters.
The smuggling operation centered on an order of 130 B300 servers manufactured by Super Micro. Prosecutors allege that the group generated fraudulent end-user documentation to falsely indicate the equipment would be deployed at a leased facility within Taiwan. Of the total order, 74 servers were successfully delivered to customers in China through various shipping routes, including direct transport and indirect channels via Japan, Indonesia, and Hong Kong. Taiwan customs officials intercepted the remaining 56 servers after identifying suspicious paperwork.
A Taiwan-based Nvidia employee identified only by the surname Chang has been named the primary orchestrator of the scheme. According to the indictment, Chang coordinated the shipments and now faces charges including document forgery and breach of trust. Prosecutors are recommending a five-year prison sentence for Chang. The indictment also names two employees from Super Micro’s Taiwan division, who oversaw the production of the physical hardware incorporated into the servers. Taiwanese authorities have explicitly stated that neither Nvidia nor Super Micro is implicated as a corporate entity; the charges target individual employees exclusively.
Since 2022, the United States has restricted the export of American-made AI chips to China, requiring special licenses for legal shipments—licenses that were not secured in this case. American officials have estimated that Nvidia hardware valued in the billions of dollars has entered China through illicit trading networks in recent years. Prosecutors state that the accused were fully aware of the rigorous internal compliance protocols maintained by both companies but allegedly conspired across organizational levels to generate profits from these unauthorized transactions.
The Keelung District Prosecutors Office stated that the group “colluded vertically and horizontally for exorbitant profits, illegally exporting high-end servers, increasing corporate compliance costs, and severely damaging Taiwan’s international image.” In response to growing pressure to align with U.S. trade enforcement policies, Taiwan has recently strengthened its export control framework to prevent cutting-edge technology from reaching China. A ninth individual faces separate but related charges concerning the alleged misappropriation of funds from a distribution company linked to the smuggling scheme. Following the announcement, Nvidia’s shares declined more than 2%, while Super Micro’s stock dropped nearly 7%. Both companies declined to provide statements when contacted regarding the indictments.