Two Super Micro Computer employees in Taiwan have been detained as part of a widening investigation into the alleged smuggling of AI servers equipped with Nvidia chips into China. The detentions, which occurred around June 29-30, represent a significant escalation of a probe that has now ensnared nine individuals across multiple companies.
SMCI shares dropped roughly 8% on the news.
What happened in Taiwan
Taiwanese prosecutors raided Super Micro’s offices in Taiwan along with associated individuals and businesses. A prior operation in May 2026 had already led to three arrests and the seizure of approximately 50 Nvidia-powered servers.
The core allegation is that entities under investigation allegedly falsified export documentation to circumvent US export restrictions on advanced semiconductor technology destined for China.
