Taiwanese prosecutors have detained an Nvidia Corp. employee as part of a widening investigation into the illegal smuggling of AI chips and servers into China. The detention follows searches of the staffer’s residence and his desk at Nvidia’s Taipei office on July 24, according to people familiar with the matter.
Criminal Allegations and Legal Basis
The Keelung District Prosecutors Office identified the suspect by his surname, Chang, and stated he was summoned for questioning after the July 24 searches. Prosecutors determined there was a strong suspicion of criminal activity
and detained Chang due to concerns he could collude with accomplices, destroy evidence, or flee.
While the prosecutors’ statement does not accuse Nvidia as a company of wrongdoing, the employee is suspected of multiple criminal offenses. These include breach of trust and the falsification of business documents under the Criminal Code. According to Taiwanese press accounts, prosecutors allege the employee signed off on know your customer
and end-user documents that allowed restricted servers to clear export reviews before being diverted to China.
Legal experts note that prosecutors are relying on paperwork offenses because Taiwan currently has no law that directly criminalizes the export of AI chips to China, although such actions violate U.S. law. A proposed amendment to Taiwan’s Foreign Trade Act to close this gap has not yet passed.
Connection to Super Micro and Global Probe
This marks the third phase of a probe that began in May and June, which originally stemmed from a Coast Guard drug-smuggling case that uncovered an underground supply chain.
Authorities have detained seven people in total as part of this probe, including the Nvidia employee, one individual from Taiwan-listed Albatron Technology, and two from Super Micro. These individuals are accused of forging documents to ship approximately 50 servers made by Super Micro to China. Some of these servers were cleared by Taiwan Customs and routed through Japan to reach mainland China and Hong Kong.
The servers involved are equipped with Nvidia GB300 Grace Blackwell Ultra chips. Investigators say roughly 50 of these servers, valued at approximately NT$700 million (about $21 million), were seized in May. Prosecutors allege shell companies placed the orders and parked the machines in a Taiwanese data center to make it appear they never left the island before they were routed onward.
U.S. Justice Department Involvement
The Taiwanese proceedings run parallel to a U.S. case. In March, the U.S. Department of Justice charged three people—including Super Micro co-founder Yih-Shyan “Wally” Liaw—with conspiring to defraud the U.S., conspiring to smuggle goods from the U.S., and violating U.S. export control laws.
The DOJ alleged that this trio diverted advanced U.S.-assembled servers containing sophisticated AI chips to China via a Southeast Asian company, generating $2.5 billion in revenue for Super Micro. Super Micro stated it was not named as a defendant, noting the conduct violated its compliance controls. The company severed ties with a charged contractor and placed Liaw and another staffer on administrative leave.
Corporate Responses
An unnamed Nvidia spokesperson told Bloomberg and AFP that smuggling is a “nonstarter” for the company. The spokesperson stated that Nvidia sells products to well-known partners, including original equipment manufacturers (OEMs), to ensure compliance with U.S. export control rules. Additionally, the spokesperson noted that any diverted chips would receive no updates, support, or service.
Super Micro has stated it is cooperating with the investigation and is not a target of the probe. The company has suspended four Taiwan-based employees connected to the matter.
