Taiwanese prosecutors have detained an Nvidia Corp. (NASDAQ:NVDA) employee as part of a widening investigation into the alleged smuggling of advanced AI chips to China in violation of U.S. export controls, a source familiar with the case told AFP on Tuesday.
According to the news agency, the man was detained after investigators raided his home and workplace on July 24, the Keelung District Prosecutors Office said in a statement, without naming Nvidia directly. He is suspected of falsifying business documents, prosecutors said.
Nvidia did not immediately respond to Benzinga‘s request for comment.
Seven Now Detained
According to AFP, prosecutors said the detained person 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”.
The Nvidia employee is one of seven people now held as part of the probe, which also includes two employees from Super Micro Computer Inc. (NASDAQ:SMCI) and one from Taiwan-listed Albatron Technology.
They are accused of forging documents to ship roughly 50 Super Micro servers containing advanced Nvidia chips to China, with some cleared through Taiwan customs and routed via Japan.
A Widening Global Case
The detention in Taiwan follows a broader crackdown. U.S. authorities unsealed an indictment in March alleging Super Micro employees diverted Nvidia AI chips to China worth billions of dollars. Singapore police separately seized a luxury bungalow worth more than $40 million this month as part of linked fraud investigations.
Price Action: Nvidia’s shares were down about 1% to $194.49 in pre-market trading on Tuesday, having gained about 4% so far this year.
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