Nvidia worker among 9 charged in Taiwan chip smuggling case

The U.S. restricts exports to China of the most advanced silicon chips used to power AI systems, including those designed by industry leader Nvidia.(AFP) — Nine people in Taiwan, including an Nvidia employee, were charged Monday in connection with the illegal export of artificial intelligence servers to China, Taiwanese prosecutors said.The indictments follow an investigation into shipments of “high-end” AI servers made by Nasdaq-listed Super Micro Computer and containing advanced Nvidia chips to China in violation of U.S. export controls.Eight of the nine defendants were charged with breach of trust and forging documents to smuggle 74 servers containing Nvidia chips to China, the Keelung District Prosecutors Office said in a statement.Of those servers, 50 were transshipped through Indonesia, eight were sent via Japan and the rest were exported directly to China. An additional 56 servers were seized at Taiwan’s border, the statement said.Three of the defendants were also charged with embezzlement.The United States restricts exports to China of the most advanced silicon chips used to power artificial intelligence systems, including those designed by industry leader Nvidia.But violating U.S. chip export restrictions is not a criminal offense in Taiwan, a situation lawmakers and experts say needs to change. Taiwanese prosecutors have instead relied on other laws to pursue offenders.The nine defendants include two Super Micro employees, one Nvidia employee, one employee of Taiwan-listed Albatron Technology and another from Chief Telecom, prosecutors said.Neither Nvidia nor Super Micro immediately responded to AFP’s requests for comment.Prosecutors said they were seeking sentences of up to five years in prison for seven defendants who were “driven by the pursuit of exorbitant profits” to collude in the illegal export of the servers.“This not only increased corporate compliance costs but also severely damaged the nation’s international image,” prosecutors said.They were seeking more lenient sentences for the other two defendants, who confessed to all charges and cooperated with the investigation.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads