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Taiwanese prosecutors have charged nine individuals Monday on allegations of illegally smuggling high-end artificial intelligence servers to mainland China, marking the latest escalation in technology competition between Beijing and Washington. The defendants include one employee from chipmaker Nvidia and two former workers from server manufacturer Super Micro Computer, according to court documents from the Keelung District Prosecutors’ office.
Advanced semiconductor technology and AI infrastructure have emerged as a critical battleground in the U.S.-China technological rivalry. The United States has enforced increasingly strict export limitations on Nvidia chips destined for China since 2022, most recently requiring licenses for the company’s H20 processors in April 2025 before permitting limited resumed sales later that year.
The case centers on the illegal export of graphics processing units designated B300, which are prohibited from sale to China under current restrictions. Prosecutors allege the defendants circumvented control mechanisms designed to block unauthorized transfers, with 74 servers ultimately reaching Chinese territory through circuitous routes involving Indonesia, Japan, and Hong Kong.
An Nvidia manager identified only as Chang faces the maximum possible five-year sentence for allegedly authorizing the GPU releases. Prosecutors characterized Chang as the operation’s “key figure” and noted his “clearly poor attitude” following the alleged offense, according to case documents.
A separate smuggling attempt involving 56 servers failed, with those units remaining in Taiwan, prosecutors stated. Some defendants allegedly established a front company in Japan and created fraudulent websites to obscure the shipments from authorities.
Nvidia pledged cooperation with Taiwanese investigators to resolve the allegations quickly, while Super Micro acknowledged the arrests of its former employees resulted from its own voluntary disclosure to authorities and promised to strengthen its export compliance procedures.
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