Taiwanese firms probed for smuggling high-end AI servers to China

Taiwanese prosecutors have launched a second wave of searches and questioning in an investigation into alleged smuggling of high-end AI servers containing NVIDIA's GB300 chips to mainland China, Hong Kong, and Macau. The probe targets three IT industry players, including Supermicro's Taiwan branch and two publicly listed companies, Qingyun and Shifang Telecom.

Authorities are investigating how these companies allegedly used false declarations to export the advanced AI servers. The Keelung District Prosecutors Office is leading the investigation, which has already involved searches of residences and offices, and the seizure of 50 Supermicro AI servers. These servers, purchased for NT$700 million (approximately $21.7 million USD), were intended for export but were intercepted.

Prosecutors believe the smuggling operation involved exporting the servers from Keelung to Japan, then onward to Hong Kong, which serves as a transit point for mainland China. At least one shipment of NVIDIA AI chips is suspected to have successfully reached China. The investigation aims to uncover the full network involved in this illicit trade of advanced technology.

This case is linked to broader international scrutiny of AI chip exports. Previously, a US-based company's executives and contractors were indicted in March for shipping advanced NVIDIA AI chips to certain Asian countries, violating US policy. The current Taiwanese investigation seeks to clarify the supply chain and hold those involved accountable for circumventing export regulations.