Nvidia senior manager among nine indicted in Taiwan over AI server smuggling scheme
Prosecutors in Keelung allege that employees from Nvidia and Supermicro forged documents to conceal the illegal export of 74 high-end B300 servers to China, a move that intensifies scrutiny over US export controls and corporate compliance.
Taiwanese prosecutors in Keelung have indicted nine individuals, including a senior Nvidia manager and two Supermicro employees, for allegedly forging documents to cover up illegal exports of high-end AI servers to China. The suspects face charges of breach of trust and document forgery, while one additional suspect linked to a related case remains at large, accused of siphoning funds from a distributor company involved in the scheme.
According to Reuters, the investigation revealed that co-conspirators falsified records to make it appear that 130 Nvidia B300 servers were installed and in use at a facility in Taiwan. However, 74 of these servers were ultimately exported and delivered to Chinese customers in violation of US export controls. The remaining 56 units were blocked by Taiwanese customs officials after irregularities were detected.
This development follows a separate US probe into Supermicro co-founder Wally Liaw, who was arrested in March for allegedly funneling $2.5 billion in restricted AI servers to China since 2024. Since 2022, the United States has required a licence to export semiconductors to China to protect national security and maintain an advantage in the artificial intelligence race.
Taiwan authorities stated that the indicted employees were “fully aware” of the rigorous internal control procedures at both Nvidia and Supermicro. Officials alleged that the manager and employees “colluded with one another at various levels for enormous profit,” illegally exporting high-end servers and severely damaging the nation’s international image. Supermicro has confirmed it is cooperating with investigators but emphasised that it is not a target of the probe.
The case has prompted renewed scrutiny of compliance procedures at both firms. In May, Nvidia CEO Jensen Huang publicly criticised Supermicro’s compliance program, urging improvements to prevent future violations. Supermicro has since fired several employees connected to the scheme and stated that a third-party investigation cleared its current senior officials of involvement.
As the US considers the Remote Access Security Act to extend export controls to remote cloud-based access, the scandal highlights the challenges of enforcing regulations in a complex global supply chain. The indictment comes shortly after Nvidia announced a 15 per cent price increase for AI servers, adding financial pressure to an already tense regulatory environment.
