Taiwanese government agencies conducted raids on Super Micro offices and several local affiliated companies as part of an ongoing investigation into suspected illegal exports of Nvidia AI chips to China.
Bloomberg reports that Taiwanese prosecutors expanded their crackdown on technology smuggling operations with coordinated raids targeting Super Micro Computer and its business partners. The Keelung District Prosecutors Office announced that investigators searched the residences of six individuals and facilities belonging to three affiliated companies on Monday. According to a person familiar with the situation who requested anonymity, Super Micro’s Taiwan office was among the locations targeted in the operation.
The raids represent a significant escalation of Taiwan’s first major public enforcement action against AI chip diversion to China, following years of pressure from the United States to play a more active role in preventing Chinese access to advanced semiconductor technology. The United States has maintained strict export controls on cutting-edge components, including Nvidia AI chips, due to concerns that such hardware could enhance Beijing’s military capabilities. The vast majority of these advanced chips are manufactured in Taiwan.
Super Micro issued a statement confirming its cooperation with Taiwanese authorities. “Super Micro is committed to protecting our advanced technologies and intellectual property,” the company stated. “Super Micro products continued to be targeted in these matters, and we continue to cooperate with law enforcement and government officials in Taiwan and other jurisdictions in which we operate to ensure our technology is distributed as lawfully intended.”
Under current Taiwanese law, exporting AI chips to China does not constitute a criminal offense. Local authorities can warn potential sellers about possible violations of US regulations, but the only legal recourse available through Taiwan’s court system involves charging suspected smugglers with violations of other existing local laws. Taiwan is now considering legislation that would criminalize such exports directly, providing prosecutors with additional tools to combat illicit technology trade.
Enhanced export restrictions would provide Taiwan prosecutors with more powerful tools to combat illegal AI hardware trade, which is manufactured in large quantities on the island. Both Nvidia and Advanced Micro Devices rely on Taiwan Semiconductor Manufacturing Co. to produce their most advanced chips.
Any decision to restrict AI chip sales would likely provoke a response from the Chinese government, which considers Taiwan part of its territory. Taiwan, a self-governed democracy, strongly rejects this characterization.
Breitbart News previously reported that Super Micro’s co-founder has been charged in America with participating in a scheme to send Nvidia AI chips to China:
The U.S. Attorney’s Office for the Southern District of New York unsealed an indictment on Thursday charging Yih-Shyan “Wally” Liaw, Ruei-Tsan “Steven” Chang, and Ting-Wei “Willy” Sun with violating the Export Control Reform Act. The charges relate to an alleged scheme to smuggle advanced AI technology containing Nvidia chips to China, despite strict export restrictions designed to protect U.S. national security interests.
Liaw, a co-founder of Super Micro Computer and member of its board of directors, serves as senior vice president of business development at the company. He controls approximately $464 million worth of Super Micro shares. Chang works as a sales manager in Taiwan, while Sun served as a contractor for the company. Super Micro confirmed these roles in a statement released after the indictment became public.
Following the announcement of the charges, Super Micro shares dropped more than 27 percent in Friday morning trading. The company stated that while it is not named as a defendant in the case, it has placed the employees on leave and terminated its relationship with the contractor.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.