Taiwanese authorities reportedly expanded an investigation into the alleged illegal export of Super Micro servers linked to Nvidia AI chips destined for China.
- The investigation centers on the alleged illegal export of Super Micro servers carrying Nvidia AI chips to China.
- Authorities have summoned the individuals searched as Taiwan weighs stricter AI chip export rules.
- The latest action follows arrests made in May over alleged falsified export documents involving Super Micro servers.
Shares of Super Micro Computer Inc. (SMCI) fell more than 7% on Monday afternoon after the company’s offices in Taiwan were reportedly raided by government authorities. The raids widened an ongoing investigation into the alleged smuggling of Nvidia (NVDA) chips into China through Super Micro Computer’s servers, stated the report.
At the time of writing, the SMCI stock had recovered some of its losses but was still down about 5%.
Taiwan Widens Investigation
Investigators searched the homes of six individuals and the offices of three affiliated companies, according to a Bloomberg report, citing a person familiar with the matter. While prosecutors did not disclose the identities of those searched, Bloomberg reported that Super Micro’s Taiwan office was among the locations.
Taiwan’s Keelung District Prosecutors Office stated that the searches were part of an ongoing investigation into the alleged illegal export of Super Micro servers. Authorities also raided Taiwanese data center operator Chief Telecom Inc. and Super Micro distributor Albatron Technology Co., according to the report.
Focus On AI Chip Exports
The latest searches mark an expansion of Taiwan’s first public crackdown on the diversion of AI chips after years of pressure from Washington to strengthen restrictions on China’s access to advanced technology. The U.S. has long limited exports of advanced AI chips to China over concerns the technology could support Beijing’s military capabilities.
Taiwan currently does not classify AI chip exports to China as a criminal offense, stated the Bloomberg report, adding that authorities have still warned exporters that such shipments could violate U.S. rules, leaving prosecutors to rely on other local laws when pursuing suspected smugglers. Taipei is now considering making such exports a criminal offense, which would give investigators broader powers to pursue illegal shipments, said the report.
Investigation Builds On Earlier Arrests
The latest enforcement action follows arrests made in May, when authorities detained three individuals accused of falsifying export documents tied to Super Micro servers carrying Nvidia AI chips. The Keelung District Prosecutors Office said the individuals searched during Monday’s raids have also been summoned for questioning.
Taiwan is also considering strengthening its AI chip export controls to better align with U.S. restrictions.
SMCI Stock: What Stocktwits Retail Sentiment Says
On Stocktwits, retail sentiment for SMCI slipped to ‘bearish’ from ‘normal’ over the past 24 hours, while message volume was ‘low’. The SMCI stock is down nearly 5% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<