Taiwanese execs detained in alleged $22 million AI chip smuggling ring

Taiwanese prosecutors have detained three executives on suspicion of smuggling advanced AI servers equipped with NVIDIA chips to mainland China, Hong Kong, and Macau. The individuals, associated with Super Micro, Qing Yun, and CHT Cloud, face charges including document forgery and breach of trust.

The case centers on allegations that these companies falsified export declarations to ship high-end AI servers, valued at around NT$700 million (approximately $22 million), to the target regions. Prosecutors have requested pre-trial detention for the three executives due to concerns about collusion and the destruction of evidence. Two other individuals involved have been granted bail of NT$100,000 and NT$50,000 respectively.

The investigation was prompted by a U.S. government probe into a U.S.-based client's shipments of NVIDIA's GB300 chips to Asia. This action triggered U.S. policy red lines, leading to the indictment of several individuals connected to the U.S. company in March.

Authorities previously seized 50 Super Micro AI servers loaded with NVIDIA GB300 chips and over NT$9 million in cash during searches on May 20. While some servers were recovered, prosecutors suspect that at least one batch of NVIDIA AI chips was successfully smuggled to China, with Hong Kong serving as a transit point. The investigation is ongoing to trace the full network involved.