Taiwan detained a suspected Nvidia employee in connection with an AI server smuggling probe involving Super Micro Computer and alleged illegal export of advanced chips to China.

Taiwanese prosecutors have detained a man reported to be an Nvidia employee as they expand an investigation into the alleged illegal export of advanced Super Micro AI servers containing restricted US technology to mainland China.

The Keelung District Prosecutors' Office questioned a suspect identified only by the surname Chang following searches of his home and workplace on July 24. While prosecutors did not disclose his employer, local outlet Mirror Media reported that Chang works for Nvidia. Prosecutors argued that Chang posed a flight risk and could tamper with evidence or collude with accomplices or witnesses, leading the court to approve his detention.

Investigators identified the servers at the centre of the probe as equipped with Nvidia chips subject to US export restrictions introduced in 2022. These measures prohibit the export or sale of certain advanced semiconductors and artificial intelligence technologies to China.

Nvidia did not confirm whether the detained suspect is one of its employees. The chipmaker stated that it primarily sells its products to established original equipment manufacturers (OEMs) and works closely with its partners to ensure compliance with US export control regulations.

This detention marks the third phase of Taiwan's investigation into the alleged export network. An earlier operation in May led to the detention of three people suspected of illegally shipping high-end Super Micro AI servers fitted with restricted Nvidia chips to China. A second round of searches in late June resulted in the detention of two employees at Super Micro's Taiwan unit as investigators widened their inquiry.

The case parallels separate US action: in March, the US Department of Justice charged three people linked to Super Micro, including one of the company's co-founders, with allegedly helping to smuggle at least $2.5 billion worth of US artificial intelligence technology to China in violation of US export control laws.

Taiwan, the world's leading producer of advanced semiconductors used in artificial intelligence applications, has tightened export controls in recent years to prevent sensitive technologies from reaching China as tensions between Washington and Beijing over advanced technology and national security continue to escalate.