Nine People Charged in Taiwan for Trafficking AI Servers to China

Nine individuals, including an executive from NVIDIA and two employees from Supermicro, are being prosecuted in Taiwan for their involvement in an illegal network exporting AI servers to China. The case involves fraudulent orders, complex routes, and heightened customs checks.

Blocked shipments, 74 servers already delivered to China

According to Taiwanese authorities, out of the 130 B300 servers involved, 74 were shipped to China after transiting through Japan, Indonesia, and Hong Kong. The remaining 56 servers, officially destined for Japan, were seized by Taiwanese customs due to administrative anomalies detected during inspection. According to the Taiwanese judiciary, the individuals involved conspired to make significant profits from these illegal exports, which increased compliance costs for businesses and harmed Taiwan's international reputation.

Nine suspects, including employees from NVIDIA and Supermicro

Nine individuals have been arrested in Taiwan for their alleged involvement in the illegal export of AI servers. Among them is an executive from NVIDIA and two employees from Supermicro, according to a source.

Fraudulent orders and circumventing export bans

Investigators explain that a fraudulent order for 130 B300 servers was placed with Supermicro using fake documents, with the servers declared as intended for installation in Taiwan. This network is said to have been established to circumvent U.S. export bans targeting China, which faces restrictions on importing top components for AI development. This situation has led some actors to resort to illegal means to obtain this equipment. Taiwan, where the most sought-after AI servers are produced by companies like TSMC and a specialized industrial ecosystem, claims to be enhancing its vigilance against these risks, particularly concerning the export of sensitive materials.