Taiwan Raids Super Micro Offices in Nvidia Chip Smuggling Investigation

On June 29, government officials in Taiwan raided the offices of Super Micro Computer, a well-known technology company. The raid was part of an investigation into the alleged smuggling of powerful Nvidia computer chips into China. Authorities believe the chips were hidden inside Super Micro's servers, which are large computers used to store and process data. The news caused Super Micro's stock price to drop more than 8 percent that same day.

Taiwan's Keelung District Prosecutors Office said investigators searched the homes of six people and the offices of three related companies on June 29. The searches were connected to claims that Super Micro's servers were exported illegally. Prosecutors did not name everyone involved, but a source familiar with the case confirmed that Super Micro's Taiwan office was among the places searched.

Super Micro said it is working closely with Taiwanese authorities on the matter. The company stated, 'Super Micro is committed to protecting our advanced technologies and intellectual property.' It added that it continues to cooperate with law enforcement in Taiwan and other countries where it operates.

Two other companies were also raided on June 29. They were Chief Telecom, a Taiwanese data center company, and Albatron Technology, a company that distributes Super Micro products. All individuals whose homes or offices were searched were also asked to come in for interviews with investigators.

The United States has long restricted exports of advanced AI chips to China. The U.S. government worries that these chips could be used to strengthen China's military. Most of these chips are made in Taiwan by a company called Taiwan Semiconductor Manufacturing Co., also known as TSMC. Both Nvidia and another chip maker, Advanced Micro Devices, depend on TSMC to produce their most powerful chips.

Taiwan does not currently have a law that makes it a crime to export AI chips to China. Right now, authorities can only charge suspected smugglers under other existing laws, such as those against falsifying documents. In May, three people were detained on charges of faking paperwork tied to exports of Super Micro servers loaded with expensive Nvidia AI chips. Those individuals are suspected of successfully sending at least one batch of chips to China through Japan, and of trying to export around 50 servers that were seized before they could leave Taiwan.

Taiwan is now considering making AI chip exports to China a crime on their own. This change would give local prosecutors stronger tools to fight the illegal trade of AI hardware. The move would also bring Taiwan's rules closer in line with those of the United States, which has pushed Taiwan for years to do more to limit China's access to advanced technology.