Taiwanese prosecutors raided Supermicro’s local office and 11 additional locations on June 29 as part of a widening criminal investigation into the alleged smuggling of Nvidia’s restricted AI chips to China. The operation, led by the Keelung District Prosecutors Office, marks a significant escalation in what authorities describe as a $2.5 billion scheme to circumvent US export controls on advanced semiconductor technology.
Supermicro shares dropped as much as 7% on the news. The company says it is cooperating fully with both Taiwanese and US authorities.
Inside the alleged smuggling operation
The raids targeted Supermicro’s Taiwan office, several private residences, and the premises of three affiliated companies. Back in May 2026, Taiwanese investigators seized approximately 50 high-end servers equipped with restricted Nvidia chips in earlier raids connected to the same probe.
The US Department of Justice unsealed charges in March 2026 against Supermicro co-founder Yih-Shyan “Wally” Liaw and two associates. The indictment alleges they orchestrated a complex operation involving front companies and forged documents to disguise shipments of Nvidia-powered servers to Chinese buyers.
