Taiwan has indicted nine individuals, reportedly including a Nvidia senior manager and two Supermicro employees, for allegedly forging documents to smuggle high-end AI servers to China. Prosecutors in Keelung charged the suspects with breach of trust and document forgery, following US export control violations. The scheme involved falsifying records to make it appear that 130 B300 servers were installed locally, while 74 were actually exported to Chinese customers.

The probe intensified after US authorities arrested Supermicro co-founder Wally Liaw in March for funneling $2.5 billion in restricted hardware since 2024. While Supermicro claims it is cooperating and not a target, an internal investigation cleared current senior officials but revealed negligence in detecting illicit shipments. Consequently, the company fired several employees linked to the scheme.

Nvidia CEO Jensen Huang previously criticized Supermicro’s compliance failures, urging partners to strengthen regulations. Despite these efforts, the incident highlights ongoing tensions between US national security goals and market access in China. Investors have sued Supermicro for securities fraud, fearing reliance on illicit sales. One suspect remains at large, accused of siphoning funds from a distributor facilitating the illegal chip transfers.