Taiwan raids Nvidia office, detains employee in China AI chip smuggling case

Taiwanese prosecutors detained an Nvidia employee after raiding his home and workplace in Taipei as part of an alleged AI chip smuggling investigation.Taiwan has detained an Nvidia employee after raiding his home and workplace as part of the ongoing investigation.Taiwanese prosecutors have detained an Nvidia employee and searched the company's Taipei office as part of an investigation into the alleged smuggling of advanced artificial intelligence (AI) chips to China. According to reports, the employee was taken into custody after investigators raided his home and workplace on July 24.The detention comes as Taiwan is investigating the alleged smuggling of advanced AI hardware powered by Nvidia chips to China. Investigators suspect that a network of companies and individuals used forged documents and intermediary routes to move high-end AI servers into mainland China, potentially breaching US export controls.According to people familiar with the matter and a source cited by AFP, prosecutors later asked a court to keep the detained employee in custody on suspicion of falsifying business documents, forgery and breach of trust. The court granted the request. Investigators also searched the employee's desk at Nvidia's Taipei office during the July 24 operation.According to reports, the Keelung District Prosecutors Office confirmed that it had detained a man after carrying out searches at his home and workplace. While the office did not name Nvidia, prosecutors said the suspect could flee, tamper with evidence or influence witnesses if released. The employee's identity remains undisclosed. What is the case?The investigation began earlier this year over allegations that advanced AI servers were exported using forged documents in breach of US trade restrictions. According to reports, the servers were made by Nasdaq-listed Super Micro Computer, fitted with advanced Nvidia chips and allegedly shipped to China, Hong Kong and Macau.In May, Taiwanese authorities detained three people, including employees linked to AI server maker Super Micro Computer and a data centre operator. According to AFP, they were accused of forging documents to export Nvidia-powered AI servers to China despite US trade restrictions. Investigators reportedly identified the Nvidia employee after reviewing evidence collected during the earlier raids involving Super Micro.In a statement to AFP, Nvidia said it follows US export control rules. "Smuggling is a nonstarter," a company spokesperson said. The company added that it sells its products mainly through trusted partners, including original equipment manufacturers (OEMs), to help ensure compliance with export regulations. It also said that diverted products would not receive service, software support or updates.According to AFP, seven people are now being held in connection with the investigation, including the Nvidia employee, two people from Super Micro and one employee from Taiwan-listed Albatron Technology. They are accused of forging documents to ship around 50 Super Micro servers to China. Some of the servers were reportedly first exported to Japan before eventually reaching China.- EndsPublished By: Divya BhatiPublished On: Jul 28, 2026 16:33 IST