Taiwan prosecutors searched Super Micro Computer Inc.'s Taiwan office on June 29 as part of an investigation into alleged smuggling of NVIDIA AI chips to mainland China, detaining three individuals on charges of document forgery and breach of trust. The Keelung District Prosecutors Office coordinated searches of 12 locations including Super Micro's Taiwan office, data center operator Chief Telecom, and Super Micro distributor Qingyun Technology, questioning six technology company employees. Super Micro's stock price fell 8.1% to $28.15 in US trading on June 29 following the news. The investigation stems from allegations that suspects purchased Super Micro servers equipped with high-end NVIDIA AI chips in Taiwan and exported them to China, Hong Kong, and Macau using falsified destination declarations or misreported model specifications. Taiwan authorities are expanding enforcement against AI chip diversion to mainland China amid US export control restrictions on advanced semiconductors that could serve military purposes.
Prosecutors Detain Three Super Micro-Related Individuals on Forgery Charges
The Keelung District Prosecutors Office brought four Super Micro business personnel, one Qingyun Technology supervisor, and one Chief Telecom employee in for questioning on June 29. After interrogation, prosecutors on June 30 requested detention without bail for three individuals, citing concerns about evidence destruction and witness collusion. The detained individuals face charges of document forgery and breach of trust. Prosecutors did not publicly disclose the names of the searched entities but confirmed the investigation continues in these directions.
Investigation Originated from May 20 Smuggling Case
The Coast Guard Administration stated the current case originated from a May 20 investigation that uncovered suspects surnamed You, Wang, and Chen allegedly using false documents to export servers equipped with high-end AI chips to mainland China, Hong Kong, and Macau. The Keelung District Prosecutors Office on May 20 directed the Coast Guard and police task force to search companies and residences jointly or separately established by the three men. Prosecutors requested detention for all three, which was granted. Following further investigation, the task force identified multiple technology company employees suspected of involvement, leading to the June 29 expanded searches.
Authorities Allege False Export Documentation for NVIDIA Chip Servers
Prosecutors suspect the individuals purchased Super Micro-manufactured servers equipped with NVIDIA high-end AI chips in Taiwan, then sold them to buyers in China, Hong Kong, and Macau using false final destination declarations or reporting model numbers that did not match actual specifications. Sources familiar with the matter indicated the investigation involves using Super Micro servers to smuggle NVIDIA chips to mainland China. The Coast Guard emphasized the task force, which includes the Keelung Investigation Team, Investigation Bureau Taipei City Investigation Office, and Keelung City Criminal Police Brigade, searched 12 locations across Taipei and New Taipei on June 29 to clarify case details and trace fund and goods flows.
Super Micro Issues Statement Pledging Cooperation with Investigation
Super Micro issued a statement following the searches stating the company is working closely with Taiwan authorities and will fully cooperate with the investigation. The statement emphasized Super Micro's commitment to protecting advanced technology and intellectual property rights, noting that Super Micro products continue to be targets in related cases. The company stated it will continue collaborating with law enforcement and government agencies in Taiwan and other operating regions to ensure technology flows through legal channels.
Taiwan Considers Criminalizing AI Chip Exports to Mainland China
The action represents Taiwan's expanded crackdown on AI chip diversion to mainland China. The United States has restricted advanced AI chip exports to China for years due to concerns the hardware could serve Beijing's military purposes. Taiwan currently does not classify AI chip exports to mainland China as criminal offenses, limiting prosecutors to pursuing smuggling suspects under existing laws. Taipei is considering criminalizing such export activities to provide prosecutors additional tools for combating illegal trade. The Coast Guard stated it will continue cross-agency cooperation with prosecutors, police, and investigators to strictly investigate any activities assisting export control evasion or illegal high-tech product exports, maintaining national security and Taiwan's technology industry competitiveness.
US DOJ Previously Indicted Super Micro Co-Founder in March Export Control Case
The US Department of Justice in March indicted Super Micro co-founder Liao Yi-hsien, Taiwan regional business manager Zhang Rui-cang, and external contractor Sun Ting-wei for allegedly violating US export control regulations by transferring US artificial intelligence technology to China through Southeast Asian companies. The three defendants denied the charges. The case remains under review in US courts.
FAQ
What did Taiwan prosecutors search on June 29 regarding Super Micro?
Taiwan prosecutors searched Super Micro Computer Inc.'s Taiwan office, data center operator Chief Telecom, and distributor Qingyun Technology on June 29, questioning six technology company employees. The Keelung District Prosecutors Office detained three individuals on June 30 on charges of document forgery and breach of trust related to alleged smuggling of NVIDIA AI chips to mainland China.
Why did Super Micro's stock price fall on June 29?
Super Micro's stock price fell 8.1% to $28.15 in US trading on June 29 following news of the Taiwan prosecutors' searches and detentions related to the alleged AI chip smuggling investigation.
How did the current Super Micro investigation originate?
The investigation originated from a May 20 case in which Taiwan authorities uncovered suspects surnamed You, Wang, and Chen allegedly using false documents to export servers with high-end AI chips to China, Hong Kong, and Macau. Further investigation identified technology company employees suspected of involvement, leading to the June 29 expanded searches of Super Micro and related entities.
