Taiwan moves to prosecute Nvidia, Super Micro staff over illegal ‌AI server export to China

Nvidia (NASDAQ: NVDA) and Super Micro (NASDAQ: SMCI) staffers were among the nine facing prosecution in Taiwan after prosecutors initiated charges against the group accused of operating a shadow route where AI servers somehow landed in China, even though those specific shipments are currently banned. 

The Nvidia employee linked to the illegal export of AI servers to China has been detained since July. Super Micro terminated the employment of the staffers implicated in the same $2.5 billion smuggling probe.

How did Nvidia and Super Micro staff illegally reroute AI servers to China?

According to Taiwanese prosecutors, the group they are building cases against was forging shipping export documents and shipping records to hide the trail of the chips they were illegally redirecting to China.

The hardware at the heart of the case is built by Super Micro Computer and runs on Nvidia processors. However, the US already set up licensing requirements in 2022 for anyone looking to deploy that specific hardware class in China, Hong Kong and Macau. 

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