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Prosecutors in Taiwan detained an Nvidia employee as part of an investigation into alleged smuggling of AI servers into China\u2014which were powered by Nvidia\u2019s advanced chips in violation of U.S. export controls\u2014according to multiple reports on Tuesday.<\/p>\n
Prosecutors in Taiwan detained an Nvidia staffer as part of a probe into smuggling of advances AI chips into China.<\/p>\n
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In a statement<\/a> on Tuesday, Keelung District Prosecutors Office identified the suspect by his surname, Chang, and said he was summoned for questioning after investigators searched his residence and workplace last week.<\/p>\n The statement didn\u2019t mention Chang\u2019s employer\u2019s name, but Bloomberg<\/a> and Reuters<\/a> reported they are an Nvidia employee and the search targeted the chipmaker\u2019s Taipei office.<\/p>\n The statement added that after the questioning, the prosecutors determined there was a \u201cstrong suspicion of criminal activity\u201d and Chang was detained amid concerns that they could flee, destroy evidence or collude with accomplices.<\/p>\n The prosecutor\u2019s statement does not accuse Nvidia or any other company of wrongdoing but notes that the detained employee is suspected of multiple criminal offenses, including falsification of documents.<\/p>\n Forbes has reached out to Nvidia for a comment<\/p>\n As part of the probe, Taiwanese authorities detained several individuals in May and June\u2014including employees of server manufacturer Super Micro\u2014whose co-founder was arrested and charged by the U.S. Justice Department<\/a> earlier this year in a related case.<\/p>\n What Do We Know About The Super Micro Smuggling Case?<\/p>\n In March, the DOJ announced it had charged<\/a> three people, including Super Micro co-founder Yih-Shyan \u201cWally\u201d Liaw, with one count of violating U.S. export control law, one count of conspiring to smuggle goods from the U.S. and one count of conspiring to defraud the U.S. The Justice Department alleged that the trio had conspired to illegally divert advanced servers assembled in the U.S. with sophisticated American AI chips to China. Liaw, who is a U.S. citizen, was one of the two people arrested. According to the prosecutors, the three men sold servers equipped with cutting-edge Nvidia AI chips\u2014which are subject to export controls\u2014to China through a Southeast Asian company. The alleged smuggling generated $2.5 billion in revenue for Super Micro. The server maker noted<\/a> that it was not named as a defendant in the case and said the alleged conduct by the three individuals violated the company\u2019s \u201cpolicies and compliance controls.\u201d The company also said it had placed Liaw and another staffer on administrative leave and severed ties with the contractor who was charged as part of the probe.<\/p>\n Tangent<\/p>\n In a statement shared with Bloomberg, an unnamed Nvidia spokesperson said smuggling was a \u201cnonstarter\u201d for the company and the company sells its products to well-known partners to ensure compliance with export control rules. The spokesperson also said any diverted chips would receive \u201cno service, support or updates.\u201d <\/p>\n further reading<\/p>\n