Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInformation TechnologyNewsSuper Micro office raided as Taiwan expands chip smuggling probeThe move marks an expansion of Taiwan’s first public crackdown on AI chip diversion after years of pressure from the U.S.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Taipei is considering fortifying its export controls on AI chips sales to China to better align with the U.S. Photo by INA FASSBENDER/AFP via Getty ImagesSuper Micro Computer Inc.’s offices in Taiwan were raided by government authorities on Monday, widening an investigation into the alleged smuggling of Nvidia Corp. chips into China using the company’s servers, according to a person familiar with the situation.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorLocal investigators raided the residences of six individuals and the sites of three affiliated companies on Monday as part of the ongoing probe into allegedly illegal exports of Super Micro’s servers, Taiwan’s Keelung District Prosecutors Office said in a statement.While prosecutors declined to provide names of those searched, Super Micro’s Taiwan office was among them, a person familiar with the situation said, asking not to be identified because the information isn’t public. Super Micro, which has previously said it is cooperating with Taiwanese authorities on the probe, didn’t immediately respond to a request for comment.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe move marks an expansion of Taiwan’s first public crackdown on AI chip diversion after years of pressure from Washington to take a more active role in curtailing China’s tech access. The United States has for years restricted exports of advanced AI chips to China over concerns that the hardware, the vast majority of which is produced in Taiwan, could benefit Beijing’s military efforts.Taiwan doesn’t currently treat AI chip exports to China as a crime. While Taiwan authorities do warn potential sellers that they may be breaking U.S. rules should they proceed, the only legal recourse through the island’s courts is to charge suspected smugglers with violations of other, existing local laws. Taipei is now considering criminalizing exports themselves, which would give local prosecutors more tools to go after the illicit trade.Authorities made their first known detentions of alleged chip smugglers in May, on charges of falsifying documents related to exports of Super Micro servers containing highly priced Nvidia AI chips. The three individuals were suspected of successfully sending at least one batch of Nvidia’s AI chips to China via Japan, Bloomberg News has reported, and attempting to export around 50 servers that Taiwan authorities seized before they left the island.Taiwanese data centre operator Chief Telecom Inc. and Super Micro distributor Albatron Technology Co. were also raided on Monday, the person familiar with the investigation said. Taiwanese outlets including the Liberty Times newspaper reported on the names of the companies searched earlier on Monday.Chief Telecom didn’t have immediate comment. Albatron said in an exchange filing that it was searched by local investigators earlier on Monday, without providing details about why it was targeted. The company said there was no financial or operational impact.Taiwan’s Keelung District Prosecutors Office said in its statement that it has also summoned the individuals searched on Monday for interviews.Taipei is considering fortifying its export controls on AI chips sales to China to better align with the U.S., Bloomberg has reported. That would give Taiwan prosecutors more tools to crack down on illicit trade of AI hardware, which is manufactured in bulk on the island. Both Nvidia and Advanced Micro Devices Inc. rely on Taiwan Semiconductor Manufacturing Co. to make their cutting-edge AI chips.—With assistance from Twinnie Siu. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.