Taiwanese authorities raid Super Micro offices over alleged Nvidia chip smuggling to China.

Taiwanese authorities raided offices of Super Micro Computer and several local partner companies. Super Micro is a US company headquartered in San Jose, California. The raid is part of an investigation into the alleged smuggling of Nvidia AI chips to China through Super Micro servers, the Keelung District Prosecutor's Office said Monday.

According to Bloomberg, investigators searched the homes of six individuals and three affiliated companies, including data center operator Chief Telecom and Super Micro distributor Albatron Technology. Super Micro's stock dropped eight percent in US trading. The first known arrests came in May, when three people were accused of forging export documents and shipping at least one batch of Nvidia chips to China through Japan. Bloomberg also reported that a Super Micro co-founder was indicted, though the company itself has not been charged. Super Micro said it's working closely with authorities and protecting its technology.

Taiwan doesn't currently treat AI chip exports to China as a criminal offense but is considering changing that to align with US rules.

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