Nine individuals, including employees from Nvidia Corp. (NASDAQ:NVDA) and Super Micro Computer Inc. (NASDAQ:SMCI), have been indicted by Taiwanese authorities for illicitly exporting high-end AI servers to mainland China.
The prosecutors disclosed that the servers in question were graphics processing units known as “B300,” which are prohibited from sale to China. Seventy-four servers successfully made their way to China, with 50 sent via Indonesia, 16 delivered directly, and eight sent first to Japan, then Hong Kong, before reaching mainland China.
Another attempt involving 56 servers failed, and the servers remain in Taiwan, PBS NewsHour reported on Monday.
The prosecutors are seeking the maximum five-year sentences for four of the nine defendants, including an Nvidia manager identified only by his family name, Zhang. Zhang was the “key figure” responsible for “authorizing the release of the B300 GPUs” in this case but “demonstrated a clearly poor attitude following the offense,” according to the report.
A document from Taiwan’s Keelung District Prosecutors’ office states that any sale by Nvidia of high-end AI servers necessitates a thorough review process. The document further mentions that purchases of more than eight high-end AI servers require company staff to conduct on-site inspections to the clients.
Nvidia and Super Micro Computers did not immediately respond to Benzinga’s request for comments.
AI Chip Smuggling Probe Widens
This incident is part of a broader context of AI chip smuggling and export restrictions. The U.S. initiated restrictions on Nvidia’s exports of sophisticated chips to China in 2022 and progressively tightened these restrictions. In 2025, the U.S. required licenses for exports of Nvidia’s H20 chips to China, before permitting some sales to recommence later that year.
In July, Taiwanese prosecutors detained an Nvidia employee, widening the investigation into alleged smuggling of AI servers to China after searching his Taipei office and home, citing forgery and breach-of-trust allegations. He is among seven people held in the investigation, which stems from U.S. charges alleging that a Super Micro co-founder and others helped route billions of dollars of restricted Nvidia chips to China.
Furthermore, in May, it was reported that Chinese tech firms were paying roughly $1 million each for Nvidia’s B300 servers, almost double the price U.S. buyers pay, due to Washington’s export curbs and a fresh crackdown on chip smuggling.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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