Nine individuals, including employees from Nvidia Corp. (NASDAQ:NVDA) and Super Micro Computer Inc. (NASDAQ:SMCI), have been indicted by Taiwanese authorities for illicitly exporting high-end AI servers to mainland China.
The prosecutors disclosed that the servers in question were graphics processing units known as “B300,” which are prohibited from sale to China. Seventy-four servers successfully made their way to China, with 50 sent via Indonesia, 16 delivered directly, and eight sent first to Japan, then Hong Kong, before reaching mainland China.
Another attempt involving 56 servers failed, and the servers remain in Taiwan, PBS NewsHour reported on Monday.
The prosecutors are seeking the maximum five-year sentences for four of the nine defendants, including an Nvidia manager identified only by his family name, Zhang. Zhang was the “key figure” responsible for “authorizing the release of the B300 GPUs” in this case but “demonstrated a clearly poor attitude following the offense,” according to the report.
A document from Taiwan’s Keelung District Prosecutors’ office states that any sale by Nvidia of high-end AI servers necessitates a thorough review process. The document further mentions that purchases of more than eight high-end AI servers require company staff to conduct on-site inspections to the clients.
