Taiwan Targets Alleged Scheme to Send AI Servers to China

Taiwanese prosecutors have indicted nine individuals, including personnel from Nvidia and Super Micro, for their alleged involvement in illegally exporting artificial intelligence (AI) servers to China. Taiwan is the world's leading producer of advanced chips utilized in AI applications. The country has imposed strict export controls on such semiconductors since 2022, requiring a license for any export or sale to China.

Eight individuals, including one Nvidia Taiwan employee and two Super Micro Taiwan employees, were charged with breach of trust and document forgery. Nvidia and Super Micro expressed their commitment to complying with all applicable laws and cooperating fully with Taiwanese authorities to resolve the allegations as quickly as possible.

The scheme allegedly involved creating false documents suggesting that 130 B300 servers ordered from Super Micro would be installed at a rented server facility in Taiwan. Of these servers, 74 were eventually exported and delivered to Chinese customers through various routes, including direct shipments to China and transhipments through Indonesia, Japan, and Hong Kong. The remaining 56 servers were intended for export to a company in Japan, but Taiwan customs officials halted their export due to irregularities.

Prosecutors emphasized that the defendants were fully aware of the rigorous internal control procedures employed by Nvidia and Super Micro regarding exports. However, these individuals allegedly colluded with one another, aiming to profit from illegal exports, increase corporate compliance costs, and damage Taiwan's international image. Taiwan has recently tightened export controls to prevent advanced technology and know-how from reaching China, which claims the island as its own territory despite international objections.