Taiwanese prosecutors have detained an Nvidia Corp.

(NASDAQ:NVDA) employee as part of a widening investigation into the alleged smuggling of advanced AI chips to China in violation of U.S. export controls, a source familiar with the case told AFP on Tuesday.

According to the news agency, the man was detained after investigators raided his home and workplace on July 24, the Keelung District Prosecutors Office said in a statement, without naming Nvidia directly.

He is suspected of falsifying business documents, prosecutors said.

Nvidia did not immediately respond to Benzinga's request for comment.