Taiwan Raids Supermicro in Nvidia Chip Probe, Sending Shares Down 8%
Updated
Updated · Financial Times · Jun 29
Taiwan Raids Supermicro in Nvidia Chip Probe, Sending Shares Down 8%
3 articles · Updated · Financial Times · Jun 29
Summary
Taiwanese prosecutors raided Supermicro’s Taiwan office on Monday and searched distributor Albatron Technology as part of an investigation into alleged illegal exports of Nvidia AI-chip servers to China.
About 8% of Supermicro’s market value was wiped out after the raid, as the company said it was cooperating with Taiwanese authorities and working to prevent illicit diversion of server technology.
50 servers were seized and three suspects arrested in Taiwan in May in a related case involving sales through an authorized reseller, underscoring Supermicro’s claim that diversion can occur after products are sold.
$2.5 billion of Nvidia AI server shipments to Chinese customers is at the center of separate U.S. charges filed in March against three people, including Supermicro co-founder Wally Liaw, who has pleaded not guilty.
Nvidia’s most advanced AI chips are barred from China under U.S. export controls, and tightening enforcement has already doubled black-market prices there this year.
A co-founder is charged with smuggling. Can Supermicro's internal compliance ever be trusted again?
How will this billion-dollar smuggling case impact Taiwan's alignment with US tech export policies?
Do crackdowns on chip smuggling stop China’s AI progress, or just accelerate its push for self-sufficiency?
Supermicro Under Fire: Taiwan Raids Uncover Alleged NVIDIA AI Chip Smuggling to China Amid US Export Crackdown
Overview
In June 2026, Taiwanese authorities raided Super Micro Computer Inc.'s offices as part of a major investigation into the alleged smuggling of advanced NVIDIA AI chips into China. The probe revealed that Supermicro's servers may have been used to bypass strict US export controls, with chips reportedly routed through Japan before reaching China. Investigators seized about 50 servers before they could leave Taiwan, highlighting the effectiveness of coordinated enforcement. This incident underscores the growing international effort to prevent China from acquiring cutting-edge AI hardware, reflecting the tightening of global technology supply chains and increasing compliance risks for companies involved.