Taiwan’s Keelung District Prosecutors Office raided Super Micro’s Taiwan offices, six individuals’ homes and three affiliated companies as part of an expanded probe into alleged smuggling of Nvidia AI chips to China. Super Micro’s shares plunged over 7% on the report before recouping to a 5% decline.
Taiwan’s Keelung District Prosecutors Office executed searches of Super Micro’s Taiwan offices, the residences of six individuals and three affiliated companies as part of a broadening investigation into alleged illegal exports of Nvidia AI chips to China.
News of the raids sent Super Micro’s shares tumbling more than 7% intraday before recouping some losses to end down around 5%, reflecting investor concerns over potential regulatory and legal fallout.
The probe expands earlier May enforcement that led to arrests of three individuals accused of falsifying export documents for Super Micro servers loaded with Nvidia AI chips. Authorities allege shipments were diverted to China via complex routing.
Taiwan currently lacks criminal penalties for AI chip exports but is considering legislation to criminalize such shipments, which could expose Super Micro and its partners to more severe penalties and heighten compliance requirements.
Marketwatch
