"Smuggling is a nonstarter," an Nvidia spokesperson told Tom's Hardware . "We primarily sell our products to well-known partners, including OEMs, who help us ensure that all sales comply with U.S. export control rules. Even relatively small exporters and shipments are subject to thorough review and scrutiny on both sides of the globe, and any diverted products would have no service, support, or updates."
Taiwan doesn't treat the unauthorized export of AI chips to China as a crime, which is why every detention in the case has so far concerned fraud accusations. The three people arrested in May were pursued over shipping declarations rather than the shipments, and the six summoned during June's raids on Super Micro and two supply-chain partners were questioned on the same basis.
Huawei and SMIC were among 601 entities added to the International Trade Administration's strategic high-tech commodities entity list in June last year, a designation that requires government approval before a Taiwanese company can ship to any of them. The list works off buyer names and carries no performance threshold, so a rack of accelerators sold to a company that isn't on it needs no approval.
It was reported last month that Taipei is weighing performance-threshold controls modeled on Washington's, and the Ministry of Economic Affairs confirmed consultations with the U.S. on bringing advanced chips under regulation without setting a timeline. Seven weeks on, prosecutors are still building the case out of the Criminal Code.
Taiwan authorities arrest three on suspicion of smuggling Nvidia chips to China
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/nvidias-taipei-office-searched-as-taiwan-detains-employee-in-ai-chip-smuggling-probe#main
- https://www.tomshardware.com/membership
- OpenAI CEO Sam Altman says AI has entered the singularity — two weeks after OpenAI models cheated a benchmark by hacking Hugging Face
- NVIDIA Open Sources First GPU-Accelerated Medical Physics Simulation Framework
- One year into the AI-induced RAM apocalypse — how much does memory actually cost, and is there hope for a more affordable future?
- Nvidia weighs $250 billion guarantee so OpenAI can lease SoftBank's 10-gigawatt Ohio campus, report claims — Nvidia also said to be discussing $350 billion deal
- Bristol Myers Squibb Building Life Science Industry’s Most Advanced AI Factory on NVIDIA Vera Rubin
Informational only. No financial advice. Do your own research.