Taiwan's Keelung District Prosecutors Office recently raided Super Micro Computer's local offices, expanding an ongoing investigation into the alleged illegal export of Nvidia AI chips to China through Super Micro's servers. The raid also targeted the residences of six individuals and two other affiliated companies, including data center operator Chief Telecom and Super Micro distributor Albatron Technology. This action is part of Taiwan's first formal crackdown on AI chip diversion, which began in May when three individuals, including Super Micro co-founder Wally Liaw, were detained for allegedly using forged documents to export Nvidia-equipped servers to China.
Super Micro shares dropped by more than 9% on news of the raid. The company stated it is cooperating with Taiwanese authorities and other law enforcement, emphasizing its commitment to protecting its technology and intellectual property. Super Micro itself has not been charged in the investigation, though its products have been implicated in the smuggling cases.
While Taiwan does not yet criminalize AI chip exports to China, prosecutors are currently pursuing cases under existing laws, such as document forgery. However, Taipei is considering making such exports a criminal offense, which would provide investigators with broader powers to combat the illicit trade. This latest development follows a broader scheme that U.S. prosecutors have valued at approximately $2.5 billion, where Super Micro co-founder Liaw and two others were charged in March with conspiring to divert Nvidia-equipped servers to China through a front company in Southeast Asia, using methods like swapping serial numbers and employing dummy servers to deceive auditors. Liaw has pleaded not guilty, and his trial is scheduled for November.
Nvidia CEO Jensen Huang recently addressed the issue of diverted chips, stating that data centers built with such hardware would not receive support or repairs from Nvidia. The Monday raid indicates Taiwan's increasing resolve to enforce these restrictions, extending its investigation beyond initial suspects to include companies involved in handling the hardware.
