Nvidia and Supermicro Employees Indicted in Taiwan Over Illegal AI Server Exports to China

Taiwanese authorities have formally indicted nine individuals, including personnel from Nvidia and Super Micro Computer, for allegedly participating in the unauthorized export of advanced artificial intelligence servers to China.

According to prosecutors in the port city of Keelung, eight of the indicted suspects—comprising one employee from Nvidia’s Taiwan unit and two from Supermicro’s Taiwan unit—face charges of breach of trust and document forgery. Authorities reported that 50 of the restricted servers were routed through Indonesia, eight via Japan, and others sent directly to China, while an additional 56 units were intercepted and seized at Taiwan’s border.

Three of the defendants also face separate embezzlement charges. Taiwan serves as the world's leading producer of advanced semiconductor chips vital for artificial intelligence applications. Although the United States strictly regulates the export of cutting-edge silicon chips by Nvidia to China, conducting such shipments is not formally classified as a criminal offense under Taiwanese law, leading prosecutors to rely on alternative legal statutes.

In response to the developments, Nvidia stated that its personnel have every incentive to ensure full compliance with regulatory laws and confirmed it is assisting Taiwanese authorities to address the situation. Supermicro noted that its own cooperation facilitated the arrests of the individuals involved, which included two former employees of its local subsidiary, emphasizing that the company itself is not targeted in the probe and denies any wrongdoing.

Prosecutors are pursuing prison sentences of up to five years for seven defendants motivated by excessive profits, noting that the illicit actions harmed the nation's global reputation. Meanwhile, authorities are requesting lighter penalties for two suspects who confessed and aided the ongoing investigation as Taiwan continues tightening export controls to safeguard critical technology.