Nvidia's Taipei Office Raided As Taiwan's AI Chip-Smuggling Dragnet Results In Arrests
Taiwanese prosecutors have detained an Nvidia employee and searched the chipmaker's Taipei office, the first time the island's criminal investigation into the diversion of restricted AI hardware to China has reached inside the company whose processors sit at the center of it.
The Keelung District Prosecutors Office said Tuesday it had detained a man surnamed Chang on suspicion of falsifying business documents under the Criminal Code, after investigators searched his home and his workplace on July 24. Prosecutors said Chang is "strongly suspected of having committed the offences, and that there is a risk of flight, destruction of evidence, and collusion with accomplices or witnesses." A court granted the detention request.
The statement did not name Nvidia. Bloomberg first reported that Chang works for the company and that the search covered his desk at Nvidia's Taipei office, and Bloomberg's sources said the detention also involves an allegation of breach of trust. Prosecutors have not accused Nvidia of any wrongdoing.
Seven people are now being held in the case, including two from Super Micro Computer and one from Taiwan-listed Albatron Technology. Chang is the first known Nvidia employee to face detention in a chip diversion case anywhere.
The investigation opened in May, when Taiwanese officials said they were examining the shipment of high-end AI servers built by Super Micro and containing restricted Nvidia chips to China, Hong Kong and Macau in violation of US export controls. Those held are accused of forging documents to move roughly 50 Super Micro servers. Some cleared Taiwanese customs and were routed to China through Japan, an official previously told AFP.
Taiwanese media have described Chang as a senior business-development manager and reported that prosecutors are examining end-user and know-your-customer documentation he is alleged to have signed off on - the paperwork layer that export compliance depends on. Prosecutors have released no further detail on his role or the evidence.
Nvidia, whose chips power most of the world's advanced AI systems, said it sells primarily to established partners and original equipment manufacturers that help ensure compliance with US export rules. "Smuggling is a nonstarter," a spokesperson said. "Even relatively small exporters and shipments are subject to thorough review and scrutiny on both sides of the globe, and any diverted products would have no service, support, or updates."
https://www.zerohedge.com/ai/nvidias-taipei-office-raided-taiwans-ai-chip-smuggling-dragnet-results-arrests