Taiwan charges nine people for smuggling ‘high-end’ AI servers to China

Taiwanian prosecutors have charged nine individuals, including two Super Micro employees and one from Nvidia, for illegally exporting high-end AI servers to China, intensifying the US-China AI rivalry. The servers, known as "B300" graphics processing units, are banned from sale to China. Seventy-four servers were successfully delivered to China, with 50 via Indonesia, 16 directly, and eight via Japan and Hong Kong.

However, a shipment of 56 servers failed and remains in Taiwan. AI infrastructure, including advanced semiconductors largely manufactured in Taiwan, has become crucial in the ongoing US-China competition. The US has imposed export restrictions on Nvidia's advanced chips since 2022, requiring licenses for exports to China since 2022.

Nvidia spokesperson Patrick Rutherford stated they would assist Taiwan in resolving the allegations swiftly. Super Micro's statement indicated the arrests were due to cooperation with Taiwanese authorities, and the company aims to enhance its export compliance program. Four of the nine defendants face up to five years in prison, with the prosecutors emphasizing one individual's key role in authorizing the release of the banned GPUs but noting his poor attitude following the offense.

Some defendants allegedly set up companies in Japan, created fake websites, and falsified information to evade export restrictions.