Taiwan's prosecutors have taken an Nvidia employee into custody as part of a widening investigation into the alleged smuggling of advanced AI servers to China, according to reports from Bloomberg and Reuters.
The Keelung District Prosecutors' Office announced Tuesday that a suspect identified only by the surname Chang was questioned on July 24 after authorities raided his home and workplace. Prosecutors then ordered him detained, citing concerns he might flee the country, destroy evidence, or influence witnesses.
The charges against Chang include forgery and breach of trust. Investigators also searched Nvidia's Taipei office as part of the operation, the reports said.
Smuggled servers contained restricted chips
The servers at the center of the probe were manufactured by Super Micro and contained Nvidia chips that fall under US export controls. These restrictions prohibit the sale of certain advanced semiconductors to China without a license.
Nvidia did not confirm whether Chang is currently employed by the company. In a statement to Reuters, Nvidia said it primarily sells to established partners who are responsible for ensuring compliance with US export rules.
Third round of raids in expanding probe
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This latest detention marks the third round of raids in the investigation. Previous operations took place in May and June, during which three individuals and two Super Micro employees were detained.
The case highlights ongoing tensions over technology transfers to China, particularly involving advanced AI hardware that could be used for military or surveillance purposes. US export controls have tightened in recent years, restricting the sale of high-performance chips and related equipment to Chinese entities.
Background on the companies
Nvidia is a leading designer of graphics processing units and AI chips, headquartered in Santa Clara, California. The company's products are widely used in data centers, AI training, and supercomputing. Super Micro Computer, based in San Jose, California, manufactures high-performance server and storage systems that often incorporate Nvidia chips.
Taiwan is a major hub for semiconductor manufacturing and technology assembly, making it a key location for export control enforcement. The island's authorities have been increasingly active in investigating potential violations of US export restrictions.
The investigation is ongoing, and prosecutors have not disclosed further details about the alleged smuggling operation or the specific destinations in China.
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