Taiwan authorities detain NVIDIA employee on suspicion of falsifying business documents in AI chip smuggling investigation, conducting workplace and residence raids.

Prosecutors in Taiwan have detained an Nvidia employee as part of an investigation into the alleged smuggling of advanced AI chips into China in violation of U.S. export controls. The Keelung District Prosecutors Office identified the suspect by his surname, Chang, and said he was summoned for questioning after investigators searched his residence and workplace. Following questioning, prosecutors determined there was a "strong suspicion of criminal activity," and Chang was detained amid concerns he could flee, destroy evidence, or collude with accomplices. The statement did not accuse Nvidia or any other company of wrongdoing but noted that the detained employee is suspected of multiple criminal offenses, including falsification of documents.

The Taiwan probe is part of a broader investigation into illegal AI chip diversions. Taiwanese authorities detained several individuals in May and June, including employees of Super Micro, a major server manufacturer that uses Nvidia's AI chips. These detentions followed charges by the U.S. Justice Department against Super Micro co-founder Yih-Shyan "Wally" Liaw and two others in March for allegedly smuggling billions of dollars worth of Nvidia AI chips to China.

According to the DOJ, the three men conspired to illegally divert advanced servers assembled in the U.S. with sophisticated American AI chips to China through a Southeast Asian company. Liaw, a U.S. citizen, was arrested along with one of the other defendants. The alleged smuggling generated $2.5 billion in revenue for Super Micro, and each of the three men was charged with violating U.S. export control law, conspiring to smuggle goods from the U.S., and conspiring to defraud the U.S. Super Micro stated it was not named as a defendant and said the alleged conduct violated the company's "policies and compliance controls." The company placed Liaw and another staffer on administrative leave and severed ties with the contractor charged in the probe.

In a statement, an Nvidia spokesperson said smuggling was a "nonstarter" for the company and that it sells products only to well-known partners to ensure compliance with export control rules. The spokesperson added that any diverted chips would receive "no service, support or updates."