Taiwan conducts a raid on the Super Micro office as the investigation into Nvidia chip smuggling expands.
Taiwan conducted a raid on Super Micro's office and two affiliated companies as it expands its initial criminal investigation into the smuggling of Nvidia chips to China. The Keelung District Prosecutors Office targeted Super Micro Computer's local office on Monday, investigating the alleged smuggling of Nvidia chips via the company's servers. The operation also included searches of the homes of six individuals and two other affiliated companies, as reported by Bloomberg. Following the news, Super Micro's stock plummeted by over nine percent.
The searches also included Taiwanese data center operator Chief Telecom and Super Micro distributor Albatron Technology, according to a source familiar with the investigation mentioned by Bloomberg. Albatron confirmed it had been searched but did not provide further details, while Chief Telecom did not offer immediate comments.
In a statement, Super Micro indicated it is cooperating with Taiwanese authorities and remains focused on safeguarding its technology and intellectual property. The company noted that its products have continued to be involved in the smuggling cases and that it is working with law enforcement both in Taiwan and other jurisdictions. Super Micro has not been charged in this investigation.
The raid marks the continuation of Taiwan’s first formal crackdown on AI chip diversion, which started in May when prosecutors arrested three individuals accused of exporting Nvidia-equipped servers to China using fraudulent documents. Among the suspects is Super Micro co-founder Wally Liaw, who allegedly redirected at least one shipment through Japan before it entered mainland China. Approximately 50 servers were confiscated before leaving the island.
Currently, Taiwan does not classify AI chip exports to China as a criminal offense. Instead, prosecutors are charging those suspected of smuggling with violations of existing laws such as document forgery. Taipei is contemplating the criminalization of the exports themselves, which would give local prosecutors a more direct means to combat the illicit trade.
This case is linked to a broader scheme valued by US prosecutors at around two and a half billion dollars. In March, the US Department of Justice charged Super Micro co-founder Liaw and two others with conspiring to divert Nvidia-equipped servers to China through a front company in Southeast Asia, utilizing heat guns to alter serial numbers and dummy servers to mislead auditors. Liaw has pleaded not guilty, with the trial scheduled for November.
Nvidia CEO Jensen Huang addressed the smuggling issue last week, informing shareholders that data centers built with diverted chips are futile since the company will not offer support or repairs. The raid on Monday indicates Taiwan's increasing willingness to enforce this message, broadening the investigation beyond the initial suspects to include the companies involved in handling the hardware.
Other articles
Cursor has introduced an iOS app that allows developers to initiate coding agents directly from their mobile devices.
Cursor's latest iOS application enables developers to initiate and oversee autonomous coding agents directly from their phone, as AI-driven development extends beyond traditional desktop environments.
NASA's Swift telescope salvaged: a bold inaugural mission in orbit.
The NASA Swift telescope rescue involves a robotic spacecraft that will retrieve the descending observatory and elevate its orbit, marking a unique $30 million mission.
Alibaba and Tencent part ways with their lobbyists in Washington as a Pentagon regulation comes into force.
Washington lobbying firms are terminating their relationships with Alibaba and Tencent in anticipation of a Pentagon regulation that prohibits defense contracts for firms that also represent Chinese companies.
The forthcoming Galaxy Watch Ultra 2 from Samsung may feature an exceptionally bright display, but I have concerns regarding the tax implications.
The Galaxy Watch Ultra 2 might feature a display that is much more visible in sunlight, as well as a significantly larger battery. However, if these enhancements prove to be true, I am already curious about how they will affect the price.
A free soundscape application has just introduced the kinds of controls that paid relaxation apps tend to keep hidden.
Oasis version 2.2 introduces presets, new audio sounds, mixed background audio, and session memory, enhancing the free soundscape application for improved focus, sleep, meditation, and relaxation routines.
Comcast's separation serves as the clearest indication that the cable bundle is losing its hold.
The separation of Comcast from NBCUniversal is unlikely to immediately affect Peacock or Xfinity, but it indicates a growing separation between internet services and streaming benefits as the traditional cable bundle diminishes in influence.
Taiwan conducts a raid on the Super Micro office as the investigation into Nvidia chip smuggling expands.
Prosecutors in Taiwan conducted a raid on Super Micro's office along with two associated companies, extending the island's initial crackdown on AI chip smuggling.