Taiwan raids Super Micro Computer in Nvidia AI chip smuggling probe, enforcing export-control enforcement on US-bound advanced accelerators.

Taiwan's Keelung District Prosecutors Office raided the Taiwan offices of Super Micro Computer, Albatron Technology, and Chief Telecom on Monday as part of an expanded investigation into the alleged smuggling of Nvidia AI chips to China. The operation spanned 12 locations—including six private residences—and expanded the investigation to nine people from three initially under scrutiny.

According to Keelung prosecutor Huang Sheng, investigators allege the suspects falsified paperwork to facilitate the unauthorized shipment of approximately 50 Super Micro servers loaded with advanced Nvidia chips to China, circumventing U.S. export controls. At least some of those servers passed through Taiwan customs inspection before being routed to China via Japan, according to Bloomberg. The investigation began in May when prosecutors announced they were examining exports of premium AI servers destined for China, Macau, and Hong Kong.

All three companies stated they are cooperating with prosecutors. Super Micro's stock fell 8% in U.S. trading. Shares of Albatron Technology and Chief Telecom declined 10% and more than 2%, respectively, in Taipei. In a statement, Super Micro said it remains committed to ensuring its technology reaches only lawful end users, noting that its products have "repeatedly been targeted in these matters" and that the company is working with authorities in Taiwan and elsewhere.

Taiwan's investigation underscores a critical legal gap: Taiwanese law contains no provision specifically criminalizing AI chip sales to China, forcing authorities to construct cases using other statutes not designed for this purpose. To address this, DPP legislator Chung Chia-pin—affiliated with President Lai Ching-te's ruling party—is drafting a Foreign Trade Act amendment that would establish a dedicated "mainland China semiconductor chip clause" banning such shipments outright.

This marks Taiwan's first openly acknowledged effort to halt illicit AI chip flows, an initiative Washington has long urged the island to undertake. Chris McGuire, a Council on Foreign Relations specialist on China and AI who served on the National Security Council, described the diversion of chips through Taiwan and Southeast Asia as a "really significant problem," noting at a Taipei forum that it is not a criminal violation under Taiwanese law, though it is under U.S. law.

The Taiwan investigation is separate from, though potentially connected to, a parallel U.S. case involving Super Micro's co-founder Yih-Shyan "Wally" Liaw and two others, charged in March with diverting roughly $2.5 billion in Nvidia-equipped servers to China through a Southeast Asian intermediary. A Bangkok-based firm called OBON Corp was later identified as the alleged middleman. Prosecutors cautioned against drawing conclusions, saying they have not yet established any connection between the Taiwanese and U.S. proceedings.