Taiwan Detains Nvidia and Supermicro Executives in AI Chip Probe

Taiwanese prosecutors detained an Nvidia Corporation employee, identified as a senior business-development manager surnamed Chang, for allegedly forging end-user and customer documents to smuggle restricted AI servers into China. The Keelung District Prosecutors Office alleges Chang falsified records to route servers intended for Southeast Asia toward mainland China, bypassing export reviews.

The investigation also led to the detention of several Super Micro Computer employees, including co-founder Yih-Shyan "Wally" Liaw. Authorities seized approximately 50 servers containing Nvidia GB300 Grace Blackwell Ultra chips, valued at $21 million, which were allegedly routed through third countries such as Japan. The probe began after a drug-smuggling case uncovered an underground supply chain and runs parallel to a March indictment by the United States Department of Justice alleging a $2.5 billion smuggling scheme.

Nvidia Corporation has stated it complies with U.S. export controls and noted that diverted products receive no technical support. To mitigate risks, the company implemented a customer whitelist and conducted data center field inspections at the request of the White House. In response to the scandal, Taiwan is considering a criminal ban on all AI chip exports to China to close active smuggling routes.