Taiwan has charged three suspects in its first formal crackdown on smuggling of advanced Nvidia chips to China, in violation of US export restrictions.
The Keelung District Prosecutors Office charged individuals identified by the surnames You, Wang, and Chen with document forgery. The alleged scheme involved falsifying export documents for high-end AI servers equipped with Nvidia chips, routing them through Japan before they reached mainland China via Hong Kong and Macau.
Authorities seized approximately 50 Supermicro AI servers valued at around $15.6 million.
The case marks Taiwan's first formal action against semiconductor smuggling tied to US restrictions on advanced chip exports to China, which aim to prevent the use of AI hardware for military and surveillance purposes.
The charges focus on falsified paperwork to disguise the true destination of the servers. Supermicro, the manufacturer, is not accused of wrongdoing.
The case underscores persistent demand for restricted Nvidia chips in China, as the company continues to design alternative chips compliant with US regulations.