The probe extends beyond Supermicro itself, with investigators also searching Supermicro distributor Albatron Technology and data center operator Chief Telecom, according to a person familiar with the matter, as cited by Bloomberg . Albatron confirmed in an exchange filing that it had been searched, reporting no financial or operational impact, and its shares fell 10% in Taipei. Meanwhile, Chief Telecom said its operations remained normal, and its stock slid more than 2%.
Taiwanese law doesn’t classify the unauthorized export of AI chips to China as a crime, so prosecutors are currently leaning on liberal interpretations of existing statutes to build their case. Raids from last month that opened the investigation ultimately led to charges being laid against three suspects for falsifying shipping documents — not for breaching any export restrictions — after authorities seized roughly 50 Supermicro servers bound for China, Hong Kong, and Macau. Monday’s summonses follow the same pattern, with the six individuals questioned over document offenses rather than the exports themselves.
Taipei is currently considering new legislation that would restrict AI chip sales to every customer in China, not only blacklisted firms such as Huawei and SMIC, a change that would let prosecutors charge smuggling as an export crime for the first time. The measure is under discussion in trade talks with the United States and has not been finalized, so, until and if it passes, every action by Taiwanese officials will need to rest on forgery and fraud charges.
Meanwhile, the U.S. is prosecuting the same scheme under export-control law. A federal indictment charges Supermicro co-founder Yih-Shyan “Wally” Liaw with conspiring to divert roughly $2.5 billion in Nvidia-equipped servers to China through a Southeast Asian front company, using dummy servers and serial-number labels lifted with heat to deceive auditors. Liaw pleaded not guilty and was released on a $5 million bond, with a trial set for November 2nd, and faces up to 20 years if convicted.
Taiwan raids 12 locations in its first formal crackdown on Nvidia AI chip smuggling
Supermicro says it assisted Taiwanese authorities in server smuggling bust that led to three arrests
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/taiwan-raids-super-micro-and-two-supply-chain-partners-in-widening-nvidia-smuggling-probe#main
- https://www.tomshardware.com/subscription
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Informational only. No financial advice. Do your own research.