Taiwan authorities suspect Nvidia employee of attempting to smuggle AI chips into China

Taiwan authorities detained an Nvidia employee surnamed Chang on suspicion of attempting to illegally export AI chips to China. According to PC Gamer, investigators searched Chang's home and workplace at Nvidia's Taiwan office on Tuesday. Chang is accused of breach of trust and document forgery; Nvidia itself has not been charged. The investigation is part of at least eight similar cases involving potential illegal AI chip supply routes across four jurisdictions. Taiwan prosecutors allege that suspects used forged documents to ship Super Micro servers to China, and that AI chips may have previously entered China via Japan. In March, US authorities also charged three Super Micro employees, including a co-founder, over alleged illegal AI chip exports. Nvidia stated that smuggling is unacceptable and that it supplies products mainly to known partners, including OEMs, who help ensure all transactions comply with US export control rules. Nvidia added that even small shipments face scrutiny, and products diverted in violation of rules receive no technical support or updates. US restrictions on advanced AI chip exports to China have been in place since 2022, and Taiwan has no such export restrictions, though it emphasizes protecting semiconductor technology under its National Security Act.