Taiwan charges nine, including Nvidia staff, over AI server smuggling to China
Taiwan charges nine over AI server smuggling to China

Taiwanese prosecutors on Monday charged nine individuals, including one employee from Nvidia and two from Super Micro, with illegally exporting "high-end AI servers" to mainland China. The charges add another flashpoint in the ongoing artificial intelligence rivalry between the United States and China.

The servers in question contained graphics processing units (GPUs) known as "B300," which are banned from sale to China, according to the Keelung District prosecutors' office in Taiwan. Prosecutors stated that 74 servers successfully reached China: 50 were routed through Indonesia, 16 were delivered directly, and eight were sent via Japan and then Hong Kong before arriving in mainland China.

Failed shipment and legal framework

An additional attempt to send 56 servers failed, and those servers remain in Taiwan, the prosecutor's office confirmed. The case highlights the strict export controls that govern high-end AI infrastructure, which includes advanced semiconductors largely manufactured in Taiwan.

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Washington began restricting Nvidia's exports of advanced chips to China in 2022 and has tightened these measures in subsequent years. In April 2025, the US required licenses for exports of Nvidia's H20 chips to China, though some sales were allowed to resume later that year. Under current export controls, any sale of high-end AI servers—the computer infrastructure housing chips needed to power AI systems—requires a rigorous review process, according to the Keelung District prosecutors' document.

The document also noted that purchases of more than eight high-end AI servers require company staff to conduct on-site checks at the client's location.

Company responses and legal proceedings

In a written statement, Nvidia spokesperson Patrick Rutherford said, "We will work with the Taiwan authorities to help them resolve the allegations as quickly as possible." Super Micro also issued a statement, saying the arrests of two of its former employees resulted from its cooperation with Taiwanese authorities. The company said it will continue to work to "enhance its robust export compliance program to protect American innovation."

Prosecutors are seeking maximum five-year sentences for four of the nine defendants, including Chang, an Nvidia manager identified only by his family name. The document described Chang as the "key figure" responsible for "authorizing the release of the B300 GPUs" in this case but noted he "demonstrated a clearly poor attitude following the offense."

Methods used to evade restrictions

Some defendants allegedly established a company in Japan to help transfer eight of the servers successfully. Others reportedly created fake websites and falsified information to bypass export restrictions, according to the prosecutors.

The case underscores the growing importance of AI infrastructure in US-China competition, with advanced chips and servers becoming a central battleground. The outcome of these charges could set a precedent for how Taiwan enforces export controls on AI technology, potentially affecting future shipments and corporate compliance practices.

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