Taiwan detains Nvidia worker in chip smuggling probe: source familiar with case

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Taipei: Taiwanese prosecutors have detained an Nvidia employee as part of an expanding investigation into the alleged smuggling of the company's advanced artificial intelligence chips to China, marking a significant development in efforts to enforce US export controls. 

Authorities arrested the employee after raids on his home and workplace, alleging offences including the falsification of business documents.

The probe centres on the suspected illegal shipment of around 50 Super Micro AI servers equipped with advanced Nvidia chips to China. I

nvestigators believe forged documents were used to move some of the servers through Japan after they cleared Taiwan customs. Seven people, including employees from Super Micro and Albatron Technology, are currently being held in connection with the case.

Nvidia said it strictly follows US export regulations and described chip smuggling as a "nonstarter", adding that diverted products would receive no service or support. Prosecutors are still examining whether the Taiwan investigation is connected to similar Nvidia chip smuggling cases previously uncovered in the United States and Singapore.