Nvidia Worker Among Nine Indicted in Taiwan for Smuggling AI Servers to China
Taiwan prosecutors have indicted nine people, including employees of Nvidia and Super Micro, for their involvement in the illegal export of artificial intelligence servers to China. The alleged scheme involved making it appear that high-end AI servers ordered from Super Micro would be installed and used at a rented server facility in Taiwan.
Of the 130 B300 servers ordered, 74 were ultimately exported and delivered to Chinese customers through various routes, including direct shipments to China and transhipments through Indonesia, Japan, and Hong Kong. The remaining 56 servers were intended for export to a company in Japan but were stopped by Taiwan customs officials due to irregularities.
The defendants are accused of colluding with each other at various levels for enormous profit, illegally exporting high-end servers, and damaging the nation's international image. This case highlights the importance of rigorous internal control procedures regarding exports, particularly in light of the US strict curbs on Nvidia chip exports to China since 2022.