Taiwan Raids Super Micro Over Nvidia Chip Smuggling, Shares Slide 9%
NVDA•Taiwan’s Keelung District Prosecutors raided Super Micro’s Taiwan office plus six residences and three affiliates investigating alleged smuggling of Nvidia AI chips to China, sending Super Micro shares down 9%. Taipei is considering criminalizing AI chip exports to China, a move that could tighten controls on Nvidia’s Taiwan-based supply chain.
1. Raid Details
Taiwan’s Keelung District Prosecutors raided Super Micro Computer’s Taiwan office, searched six individuals’ residences and three affiliated company sites in a probe into alleged smuggling of Nvidia AI chips to China.
2. Legal Scope Expansion
Authorities declined to press charges under current law but are considering criminalizing exports of advanced AI chips to China, which would grant prosecutors broader enforcement powers against suspected smugglers.
3. Market Reaction
Shares of Super Micro tumbled as much as 9% on news of the raids before recovering some losses, reflecting investor concern over legal exposure and potential shipment disruptions.
4. Supply Chain Impact
Enhanced export controls could tighten oversight of Nvidia’s Taiwan-based manufacturing and distribution channels, potentially delaying or reducing chip shipments to Chinese customers.
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