Taiwan prosecutors detained an Nvidia employee (Chang) on suspicion of falsifying business documents in connection with AI chip smuggling probe. Nvidia stated smuggling allegation is a "nonstarter." Investigation appears tied to advanced GPU export controls.
Taiwanese prosecutors have detained an Nvidia employee and searched the company's Taipei office as part of an investigation into the alleged smuggling of advanced artificial intelligence chips to China. According to reports, the employee was taken into custody after investigators raided his home and workplace on July 24. Investigators suspect that a network of companies and individuals used forged documents and intermediary routes to move high-end AI servers into mainland China, potentially breaching US export controls.
According to people familiar with the matter and sources cited by AFP, prosecutors asked a court to keep the detained employee in custody on suspicion of falsifying business documents, forgery, and breach of trust. The court granted the request. Investigators also searched the employee's desk at Nvidia's Taipei office during the July 24 operation. The Keelung District Prosecutors Office confirmed the detention but did not name Nvidia. Prosecutors argued the suspect could flee, tamper with evidence, or influence witnesses if released. The employee's identity remains undisclosed.
The investigation began earlier this year over allegations that advanced AI servers were exported using forged documents in violation of US trade restrictions. According to reports, the servers were made by Nasdaq-listed Super Micro Computer, fitted with advanced Nvidia chips, and allegedly shipped to China, Hong Kong, and Macau. In May, Taiwanese authorities detained three people, including employees linked to Super Micro Computer and a data center operator, accused of forging documents to export Nvidia-powered AI servers to China despite US trade restrictions. Investigators identified the Nvidia employee after reviewing evidence collected during those earlier raids.
In a statement to AFP, Nvidia said it follows US export control rules. "Smuggling is a nonstarter," a company spokesperson said. The company added that it sells its products mainly through trusted partners, including original equipment manufacturers, to help ensure compliance with export regulations. It also stated that diverted products would not receive service, software support, or updates.
According to AFP, seven people are now being held in connection with the investigation, including the Nvidia employee, two people from Super Micro Computer, and one employee from Taiwan-listed Albatron Technology. They are accused of forging documents to ship approximately 50 Super Micro servers to China. Some of the servers were reportedly first exported to Japan before eventually reaching China.