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Taiwanese prosecutors have brought charges against nine individuals, including a senior manager at AI giant Nvidia and two Super Micro Computer employees, for having smuggled high-end servers for artificial intelligence into China. The indictment by the Keelung District Prosecutors’ Office constitutes the first major case of smuggling high-end AI servers, designed by the Americans, to China’s military and technology sectors via Taiwan.
Taiwan’s Keelung District Prosecutors’ Office on Monday confirmed the charges against nine individuals, including the senior Nvidia manager, as well as two Super Micro Computer employees. The nine individuals are accused of breach of trust and of document forgery. A fourth suspect, the head of a related entity, remains at large. He is suspected of having embezzled funds from a distributor in order to funnel these restricted chips to Chinese buyers.
According to a report in Reuters, the investigators in Taiwan have discovered that 130 units of B300 AI servers made by Nvidia were sent to a facility in Taiwan, where they were allegedly put into service. But, in fact, 74 of the units were smuggled out of Taiwan and sent to China, where they were sold to unknown customers in breach of U.S. Department of Commerce export licensing requirements. In the end, however, 56 of the alleged “in use” units were seized by customs officers in Taiwan after discovering that they had been shipped without proper documentation.
The B300 server is one of the most powerful deep learning computing systems available on the market, utilizing Nvidia’s Blackwell generation of semiconductors. Military and technologically advanced countries would gain a significant advantage in the use of such systems — hence the U.S. Department of Commerce has required export licenses for semiconductor sales to China since 2022.
The smuggling of high-end AI servers by Super Micro Computer to China was uncovered by a joint investigation conducted by Taiwan’s Ministry of Justice and the U.S. Department of Justice as part of the U.S. inquiry into Super Micro Computer’s co-founder Wally Liaw, who was arrested by the U.S. Justice Department on March 22, 2026, on charges of having allegedly funneled approximately $2.5 billion worth of high-end AI servers to Chinese buyers since 2024.
Nvidia CEO Jensen Huang in the past publicly criticized Super Micro and said that the smuggling of the high-end AI servers in question via the company’s computers would show the challenge of enforcing export controls in today’s global supply chain, when many components are manufactured in a number of countries.
The nine suspects were indicted in connection with smuggling of high-end AI computing systems made by Nvidia, to China, in violation of US export controls. The indictments come at a time when Washington and Taipei are trying to prevent Beijing from catching up with the US in terms of AI capability, which US officials view as crucial in the long-term competition with China in military, economic, and surveillance technology spaces.
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