Taiwanese prosecutors in Keelung on Monday indicted nine individuals for their alleged involvement in a scheme to illegally export advanced artificial intelligence servers to mainland China. The charges include breach of trust and document forgery, stemming from the alleged diversion of 130 Super Micro servers equipped with Nvidia B300 graphics processing units (GPUs). These B300 GPUs are subject to US export controls, which since 2022 have required licenses for their sale to China.
Among those charged are an employee from Nvidia's Taiwan unit, two employees from Super Micro's Taiwan operations, and executives associated with Taiwanese distributors. Prosecutors allege the defendants created false paperwork to make it appear that the servers would remain in Taiwan for installation at a local facility. However, a September 2025 inspection revealed that the declared installation site lacked the necessary infrastructure, such as racks, power, and bandwidth, to accommodate the order. Despite this, an Nvidia Taiwan distribution manager allegedly cleared the verification process.
Of the 130 servers ordered, 74 successfully reached customers in China. The illicit shipments were routed through various channels, with 50 servers sent via Indonesia, 16 shipped directly to China, and eight transshipped through Japan and Hong Kong before reaching mainland China. Taiwanese customs officials intercepted the remaining 56 servers due to irregularities in their documentation, preventing their export.
The Keelung District Prosecutors Office stated that the defendants were aware of the rigorous internal control procedures for exports implemented by Nvidia and Super Micro. Despite these safeguards, they allegedly "colluded with one another at various levels for enormous profit" by circumventing the restrictions. The B300 servers have reportedly commanded prices in China approximately double their cost in the United States, creating a substantial financial incentive for such illicit activities.
Neither Nvidia nor Super Micro has been charged as corporate entities in this case. Both companies have emphasized their cooperation with Taiwanese authorities throughout the investigation. Super Micro stated that its collaboration led to the arrests of the indicted individuals and affirmed that the company is not a target of the investigation. Nvidia also expressed its commitment to working with Taiwanese authorities to resolve the allegations.
This indictment follows earlier developments in the ongoing investigation. In March, the US government charged three individuals, including Super Micro co-founder Yih-Shyan Liaw, with conspiring to divert approximately $2.5 billion worth of high-performance AI servers to China. Separately, a Taiwanese national, reportedly an Nvidia employee, was arrested in July as part of the same probe.
The case highlights the challenges in enforcing export controls on advanced AI hardware, particularly given the complex global supply chains and the financial incentives for circumvention. While Taiwan does not currently classify unauthorized AI chip exports as a direct criminal offense, prosecutors are able to pursue charges under existing statutes such as breach of trust and document forgery. Prosecutors are seeking prison terms of up to five years for seven of the defendants, with two who confessed potentially receiving lighter sentences. The case underscores the increasing pressure on manufacturers to enhance compliance programs and monitor the end-use and end-user of their products.