On Monday, prosecutors in Taiwan charged nine individuals with offences linked to the illegal export of high-end AI equipment to mainland China. The accused include two people that work with Super Micro and one that works with Nvidia. This case marks another flashpoint in the technology rivalry between Beijing and Washington.
According to prosecutors, 74 servers successfully reached mainland China through the efforts of the accused people. These B300 GPU servers reached China in different ways and batches, according to investigators.
Fifty were shipped through Indonesia, 16 moved directly from Taiwan to China, while eight took a complex route through Japan, Hong Kong, and eventually China. There was another attempt to ship 56 servers as well, but this plan failed and those servers were still in Taiwan, the prosecutors revealed.
For a long time, China and the U.S. have been engaged in a fierce technology competition. AI infrastructure has taken that rivalry to a whole new level. In 2022, the U.S. imposed restrictions on the AI technology that could be exported to China, and those restrictions have been progressively tightened over the years.
Nvidia chips have especially been the subject of these restrictions since they are the most advanced AI chips globally.
The company even developed H20 chips specifically for the Chinese market as these had lower technical specifications that met the requirements of any U.S. technology that could be exported to China. However, in early 2025, Washington mandated that a license had to first be obtained before those lower-spec chips could be exported to China.
Existing export controls that Taiwan implements require that a rigorous review be conducted before the sale of AI servers is approved. Additionally, when the sale involves eight or more servers, company employees are required to undertake an on-site check at the premises of the client that has ordered the servers before a delivery is made.
The accused people bypassed the applicable processes and went as far as setting up fake companies and websites in order to conceal the true destination of the advanced servers. Information was also falsified in order to sidestep the existing export restrictions, prosecutors say.
The prosecution is seeking the maximum penalty of a five-year jail term for one of the accused, Chang, working as a manager for Nvidia in Taiwan. A spokesperson for Nvidia told reporters that the company was fully cooperating with the authorities in order to resolve the matter quickly.
Other leading American AI firms like Apple Inc. (NASDAQ: AAPL) may be well-advised to constantly review their security protocols to ensure that sensitive technology doesn’t leave the company and end up in the possession of unauthorized persons or entities in jurisdictions where such technology is subject to export controls.
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