A senior NVIDIA manager was arrested for allegedly smuggling AI servers to China, violating US export controls.
Taiwanese prosecutors have indicted nine individuals, reportedly including a senior Nvidia manager and two Supermicro employees, over an alleged scheme to illegally export high-end AI servers to China. Prosecutors in Keelung charged the suspects with offenses including breach of trust and document forgery, while one person connected to a related case remains at large.
Investigators allege that the defendants falsified documents to create the false impression that 130 servers containing Nvidia B300 AI hardware had been installed and were operational at a facility in Taiwan. In reality, authorities state that 74 of these servers were exported and delivered to customers in China. An additional 56 servers were allegedly being prepared for shipment to China when Taiwanese customs officials intercepted them after detecting irregularities.
The servers were reportedly moved through multiple jurisdictions, including Indonesia, Japan, and Hong Kong, as part of the broader operation. The nine defendants comprise one employee from Nvidia’s Taiwan operations and two from Supermicro Taiwan.
Taiwanese prosecutors stated that the employees were aware that both Nvidia and Supermicro maintain strict internal controls designed to comply with restrictions on advanced technology exports to China. Despite these safeguards, authorities allege that those involved colluded for significant financial gain, systematically falsifying documents and bypassing compliance protocols. Prosecutors noted that the activity increased corporate compliance costs and damaged Taiwan’s international reputation.
The Taiwanese investigation follows a separate U.S. case announced in March involving individuals linked to Supermicro. U.S. prosecutors charged Supermicro co-founder Yih-Shyan Liaw, Taiwan sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun over an alleged scheme involving at least $2.5 billion worth of U.S. AI technology. Authorities accused them of routing U.S.-made servers through Taiwan and other parts of Southeast Asia before forwarding them to China.
The United States has restricted exports of certain advanced AI chips to China since 2022, requiring licenses for covered hardware. Supermicro was not charged in the U.S. case and has maintained that the alleged conduct violated its corporate policies. The company confirmed it is cooperating with Taiwanese authorities and remains committed to protecting its technology and adhering to export-control regulations. Supermicro emphasized that the investigation underscores the need for enhanced cooperation between governments and the technology sector to improve supply-chain visibility and enforce export restrictions.
These latest indictments arrive as Taiwan intensifies scrutiny of shipments involving advanced AI hardware, reflecting broader efforts to prevent restricted U.S. technology from reaching China.