Two Super Micro Taiwan Staff Detained in Chip Smuggling Probes

Two employees of Super Micro Computer were detained in Taiwan in a probe regarding the illegal transfer of AI servers to China and chip smuggling cases.

Taiwanese prosecutors have detained two Super Micro Computer employees as part of a widening probe into the alleged smuggling of Nvidia AI chips and servers to China. The detentions followed raids on Super Micro's local offices and affiliates earlier in the week; prosecutors are investigating four employees for falsifying documents and breach of trust, with two detained by the Keelung District Court and two released on bail but barred from leaving Taiwan.

Investigators allege the group sent at least one batch of Nvidia chips to China and attempted to export around 50 servers that were seized before leaving the island. The case overlaps with a US federal action from March that charged Super Micro co-founder Yih-Shyan 'Wally' Liaw and others with diverting roughly $2.5 billion in Nvidia-equipped servers to China through a Southeast Asian intermediary.

Shares of SMCI fell about 8% on the news, reflecting concern about compliance controls and potential export-license exposure. The probe also underscores enforcement risk around Nvidia NVDA hardware as Washington and allied governments tighten AI-chip export rules. Investors will watch for any charges against the company itself, customer and auditor reactions, and whether the incident weighs on Super Micro's already scrutinized governance.