Taiwanese authorities have broadened their investigation into the illicit export of AI servers to China, raiding the local office of Super Micro Computer Inc., as well as two affiliated companies and the residences of six individuals. This action marks an expansion of Taiwan's first formal crackdown on AI chip diversion, which began in May with the detention of three individuals, including Super Micro co-founder Wally Liaw, accused of using forged documents to export Nvidia-equipped servers to China. The suspects allegedly routed at least one shipment through Japan and attempted to export approximately 50 servers that were subsequently seized.
The broader scheme, valued by US prosecutors at roughly $2.5 billion, involves Super Micro co-founder Liaw and two others charged in March with conspiring to divert Nvidia-equipped servers to China via a Southeast Asian front company, employing tactics like switching serial numbers with heat guns and using dummy servers to deceive auditors. Liaw has pleaded not guilty to these charges. Companies like Chief Telecom Inc., a Taiwanese data center operator, and Albatron Technology Co., a Super Micro distributor, were also reportedly searched during the recent raids. Albatron confirmed the search in an exchange filing but provided no details on why it was targeted, stating there was no financial or operational impact.
Super Micro stated it is cooperating with Taiwanese authorities and law enforcement in other jurisdictions, emphasizing its commitment to protecting its technology and intellectual property, while noting that its products are frequent targets in smuggling cases. The company itself has not been charged in the investigation. Nvidia CEO Jensen Huang has previously warned that data centers built with diverted chips would not receive support or repairs from Nvidia. Taiwan does not currently criminalize AI chip exports to China directly; instead, prosecutors are using existing laws such as document forgery to charge suspects. However, Taipei is considering legislation to criminalize these exports, which would provide local prosecutors with more direct tools to combat the illicit trade.
