Taiwan Seeks Detention of 3 in Nvidia AI Server Smuggling Case

Taiwan authorities are seeking to detain three people suspected of forging export documents to send high-performance artificial intelligence (AI) servers containing Nvidia chips to China, which is in violation of U.S. restrictions.

The Keelung District Prosecutors Office alleged that the three individuals, identified only by their surnames, knew the Super Micro Computer servers were strictly controlled by the United States and banned from sale to Mainland China, Hong Kong, and Macau.

Prosecutors say the trio allegedly conspired to buy the servers in Taiwan and use false declarations to export them for large profits. They are suspected of document forgery and related offenses under Taiwan’s Criminal Code.

On Wednesday, investigators raided 12 locations, including the suspects’ homes and related companies. Evidence was seized, and the three people were detained for questioning along with witnesses.

After overnight interviews, prosecutors applied to a court early on Thursday for their detention, citing risks of flight, evidence tampering, and collusion.

The case involves a relatively small number of servers—around 50, according to a prosecutor’s office spokesperson. It represents Taiwan’s first known crackdown using local fraud laws against semiconductor smuggling of this type.

Super Micro, a California-based U.S. tech company, builds servers that incorporate advanced Nvidia chips in AI data centers, which help train and run powerful AI models.

The United States has restricted exports of such advanced AI hardware to China since 2022 for the sake of national security. Most shipments require special licenses issued by the U.S. Department of Commerce’s Bureau of Industry and Security.

Both Super Micro and Nvidia have previously said they are committed to complying with U.S. export controls.

Prosecutors described the Taiwan investigation as being independent of a larger U.S. case, though they said any possible links will be examined.

In March, U.S. authorities charged Super Micro co-founder Yih-Shyan “Wally” Liaw and two others with conspiring to divert about $2.5 billion worth of similar AI servers to China.

According to the U.S. Department of Justice, the alleged scheme routed through Taiwan and Southeast Asia using false documentation. While Liaw and one other were arrested, with the third suspect on the run, Super Micro itself has not been charged.

Taiwan is the world’s leading producer of advanced semiconductors, powering the AI race between the United States and China, which claims the democratically governed island as its territory.

Taiwanese President Lai Ching-te has vowed to protect the island’s technological advantages.