Taiwanese prosecutors formally indicted nine individuals on August 24, including a senior Nvidia manager surnamed Chang and two senior Supermicro employees, for allegedly smuggling advanced AI servers to China in breach of US export controls [1, 2, 3].
The group is accused of illegally exporting 74 AI servers equipped with Nvidia B300 chips to China by routing shipments through Japan and Indonesia to avoid US trade restrictions [1, 2, 3]. Authorities also seized 56 additional servers intended for smuggling [1, 2, 3]. Since 2022, the US has required exporters to obtain a license before sending semiconductors to China to protect national security [1].
The Keelung District Prosecutors Office said the accused "colluded vertically and horizontally for exorbitant profits, illegally exporting high-end servers, increasing corporate compliance costs, and severely damaging Taiwan’s international image" [3]. The indictment marks Taiwan's first crackdown on illicit trade involving Nvidia AI accelerators [2, 3].
Supermicro is cooperating with authorities but has not been charged. The company said it is "committed to protecting our advanced technologies and intellectual property" and is working closely with Taiwanese officials to ensure enforcement of export controls [1]. Nvidia stated it will "work with the Taiwan authorities to help them resolve the allegations as quickly as possible," emphasizing employee compliance efforts [3].
The case follows a related March arrest in the US of Supermicro co-founder Wally Liaw, accused of funneling $2.5 billion worth of restricted AI servers to China since 2024 [1]. Chang, the Nvidia manager, was initially detained by Taiwanese authorities in July 2026 [2, 3]. One suspect linked to siphoning funds from a distributor involved in the scheme remains at large [1].
The legal process is ongoing as Taiwanese prosecutors continue to build their case against the network involved in smuggling high-tech servers into China.
