Taiwan Steps Up Probe Into AI Hardware Smuggling

By Yang Jie and Sherry Qin

Taiwanese authorities escalated a probe into the unauthorized diversion of advanced artificial-intelligence servers made by Super Micro Computer, as part of efforts to crack down on the alleged smuggling of Nvidia chips to China.

The sweep, spearheaded by prosecutors in Keelung, targeted six individuals who were subsequently summoned on Monday. While investigators didn't reveal their identities, the charges focus on document forgery and breach of trust.

The raid stems from an investigation in May into allegations that three individuals illicitly exported the U.S. company's AI servers to China that were equipped with high-end Nvidia chips.

Super Micro said in a statement that it is cooperating with authorities in Taiwan and other global jurisdictions to protect its technology and intellectual property. The company said its products continue to be targeted by illicit export networks, highlighting the need for deeper collaboration between the tech industry and governments to strengthen supply-chain visibility and enforce export controls.

The Nasdaq-listed company's shares tumbled 8% overnight.

Prosecutors in Taiwan also searched the offices of Chief Telecom, a data-center service provider, and of SuperMicro distributor Albatron Technology on Monday.

Both companies said they are cooperating with authorities and that the investigation won't have a material impact on their business operations.

Albatron's shares slid 10% on Tuesday in Taipei, while Chief Telecom fell 1.5%.

The illegal transporting of advanced AI hardware into restricted markets has become an international security flashpoint as nations battle for computing supremacy. As Western nations clamp down on access to high-performance processors, underground networks have increasingly relied on complex transshipment routes.

This growing gray market has placed Taiwan under pressure to tighten regulatory boundaries, as the island manufactures the majority of the world's advanced computing components.

In March, Super Micro said that co-founder Yih-Shyan "Wally" Liaw resigned from the server maker's board of directors after being indicted for his alleged role in a scheme to smuggle high-end Nvidia chips to China.

Super Micro then launched an independent investigation in April led by members of its board on the indictment of two former employees and a contractor over the scheme.

Write to Yang Jie at jie.yang@wsj.com and Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

June 30, 2026 04:50 ET (08:50 GMT)