Taiwan Raids Super Micro Offices in AI Chip Investigation
The Taiwanese government has launched raids on Super Micro’s offices and various local affiliates as part of an ongoing probe into the suspected illegal export of Nvidia AI chips to China.
According to reports, Taiwanese prosecutors have intensified their crackdown on tech smuggling. This includes systematic searches of Super Micro Computers and its business partners. The Keelung District Prosecutor’s Office revealed that investigators searched the homes of six individuals as well as the facilities of three affiliated companies. Notably, Super Micro’s Taiwan office was also among the locations raided, as per an anonymous source familiar with the situation.
This raid signifies a significant escalation in Taiwan’s public enforcement against the diversion of AI chips to China. This follows increasing pressure from the United States to restrict China’s access to advanced semiconductor technology. The U.S. maintains strict export controls on high-tech components, including Nvidia AI chips, due to concerns that such hardware could bolster Beijing’s military prowess. Most of these advanced chips are produced in Taiwan.
Supermicro has publicly stated its intention to cooperate with Taiwanese authorities. The company emphasized its commitment to safeguarding its advanced technology and intellectual property. “Supermicro products have been at the center of these issues,” the statement read, underscoring that the company will continue to work with law enforcement and government officials to ensure technology is distributed legally.
As it stands, Taiwanese law doesn’t classify the export of AI chips to China as a criminal act. While local authorities can issue warnings regarding potential violations of U.S. regulations, pursuing legal action in Taiwan relies on existing local laws. There’s current consideration of new legislation aimed at criminalizing these exports, which would provide prosecutors with additional means to tackle illegal technology trade.
Stricter export controls are expected to empower Taiwanese prosecutors in combating the illegal trade of AI hardware produced in significant volumes in Taiwan. Major companies like Nvidia and Advanced Micro Devices depend on Taiwan Semiconductor Manufacturing Company for their advanced chips.
The decision to limit AI chip sales may trigger backlash from the Chinese government, which views Taiwan as part of its territory, a perspective that Taiwan, as an autonomous democracy, firmly rejects.
Additionally, there have been reports that a co-founder of Super Micro was indicted in the U.S. for his involvement in a scheme to send Nvidia AI chips to China. The U.S. Attorney’s Office revealed charges against several individuals related to violating the Export Control Reform Act. They are accused of conspiring to smuggle advanced AI technology into China, despite strict export restrictions aimed at protecting U.S. national security.
The co-founder in question is Yi-Shang “Wally” Liau, who has significant holdings in Super Micro. Others involved include sales manager Rui Tsang “Stephen” Zhang and contractor Tingwei “Willy” Sun, with Supermicro acknowledging their roles after the indictment was announced.
Following the charges, Supermicro’s stock plummeted by more than 27% during morning trading. While the company is not named as a defendant, it has placed employees on leave and severed ties with contractors.
