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Super Micro Computer Inc. came under renewed scrutiny on Monday after Taiwanese authorities raided its local offices as part of an investigation into the alleged smuggling of Nvidia AI chips to China through the company’s servers, according to a Bloomberg report.
The Keelung District Prosecutors Office said investigators searched the residences of six individuals and the offices of three affiliated companies. While prosecutors did not officially identify the entities involved, reports indicated that Super Micro’s Taiwan office was among the locations searched during the operation.
Following news of the raids, Super Micro’s stock dropped as much as 9% before recovering part of its losses later in the trading session, reflecting investor concerns over the expanding investigation.
Super Micro has previously stated that it is cooperating with Taiwanese authorities regarding the probe.
The investigation marks a significant expansion of Taiwan’s first publicly disclosed enforcement action targeting the alleged diversion of advanced AI chips. The United States has imposed strict export controls on high-end Nvidia chips and other advanced semiconductors destined for China, citing concerns that the technology could support Beijing’s military and artificial intelligence capabilities. Taiwan, home to many of the world’s leading semiconductor manufacturers, plays a crucial role in the global AI chip supply chain.
Under current Taiwanese law, exporting AI chips to China is not considered a criminal offense. However, authorities can caution companies if they believe transactions may violate U.S. export restrictions. Prosecutors are currently limited to pursuing charges under existing Taiwanese laws related to smuggling or other applicable offenses.
Taiwanese officials are reportedly considering new legislation that would make unauthorized AI chip exports to China a criminal offense, giving prosecutors broader authority to combat illicit semiconductor shipments.
The Bloomberg report also said authorities raided data center operator Chief Telecom Inc. and Super Micro distributor Albatron Technology Co. as part of the same investigation. The Keelung District Prosecutors Office confirmed that the individuals involved have been summoned for questioning as investigators continue examining the alleged AI chip smuggling network.
