Taiwan prosecutors raid Super Micro's local office in probe of Nvidia AI chip smuggling to China

Taiwan prosecutors have raided the local office of US semiconductor company Super Micro Computer.

Bloomberg reported Sunday (local time) that Taiwan prosecutors expanded their investigation into allegations that Super Micro servers equipped with advanced Nvidia chips were smuggled into China.

The Keelung District Prosecutors Office searched the homes of six individuals and the premises of three companies as part of the probe. Prosecutors did not identify the targets, but sources said Super Micro's Taiwan office was among them.

Taiwan media reported that the searches also covered Chief Telecom, a Taiwanese data center operator, and Albatron Technology, a distributor for Super Micro.

Super Micro said the company "is committed to protecting advanced technology and intellectual property" and is "working with law enforcement and government officials to ensure that our technology is distributed legally and as intended."

The investigation marks an expansion of Taiwan's first public crackdown on AI chip leakage, following US pressure to cut off China's access to advanced technology.

The United States has for years restricted exports of advanced AI chips to China over concerns that Taiwan-made hardware could help bolster China's military capabilities.

Taiwan's government is reviewing plans to tighten controls on AI chip exports to China in order to align with Washington.

Taiwanese authorities have warned sellers that dealing with China could violate US regulations, but enforcement has largely been limited to charging suspected smugglers under existing laws.

The government is now considering making the exports themselves a criminal offense, which would give prosecutors additional tools to crack down on illicit transactions.

Super Micro shares fell 8.1 percent in New York trading Sunday after news of the investigation broke.