Taiwan prosecutors detained a Nvidia NVDA.O employee as part of a probe into alleged illegal exports of Super Micro SMCI.O AI servers to China, Taiwan's local media reported.
The Keelung District Prosecutors Office said in a statement on Tuesday that a suspect, surnamed Chang, was questioned after authorities searched his home and workplace on July 24. It did not say where he was employed.
Chang was later detained after prosecutors argued there was a risk he could flee, destroy evidence or collude with accomplices or witnesses, the prosecutors said.
Probe into Super Micro continues with third round of searches
The latest action was part of a third round of searches in the investigation, following earlier rounds in May and June.
In May, Taiwanese prosecutors launched the first round, detaining three people suspected of illegally exporting Super Micro's high-end AI servers equipped with restricted Nvidia chips to China.
In late June, Taiwanese prosecutors launched a second round, detaining two Super Micro workers at its Taiwan unit.
In March, the U.S. Justice Department charged three people associated with Super Micro, including one of its co-founders, with helping smuggle at least $2.5 billion worth of U.S. AI technology to China in violation of U.S. export controls.
Semiconductor powerhouse Taiwan is the world's largest producer of advanced chips used in AI applications.
Taiwan has tightened export controls in recent years to prevent advanced technology and know-how from reaching China, which claims the democratically governed island as its own territory despite Taiwan's strong objections.
Servers allegedly contained Nvidia chips subject to U.S. controls
The servers were equipped with Nvidia chips subject to U.S. export controls, the prosecutors said. These curbs imposed by Washington since 2022 make it illegal for these semiconductors to be exported or sold in mainland China.
Taiwan's Mirror Media reported on Tuesday that the suspect Chang is an Nvidia employee.
Nvidia did not confirm whether the suspect was its employee. In a statement to Reuters, the company said: "We primarily sell our products to well-known partners, including OEMs (original equipment manufacturers), who help us ensure that all sales comply with U.S. export control rules."
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