Lawsuit Filed in Taiwan Over Smuggling of Servers Carrying Nvidia Chips to China
It was determined that forged documents were used in an operation where servers equipped with AI chips were allegedly smuggled from Taiwan to China. Prison sentences are being sought for the suspects, who generated $18.4 million in revenue from the shipments.
In Taiwan, a lawsuit has been filed against nine people, including an Nvidia employee, regarding the illegal delivery of 130 Supermicro servers containing Nvidia's B300 AI chips to China despite export restrictions.
Multi-Layered Smuggling Scheme
As part of the investigation, it was determined that 130 Supermicro servers containing Nvidia's B300 AI chips were routed to China in a phased manner to bypass export bans. It was found that the suspects established a complex structure involving approved official buyers, server leasing transactions, and different data centers.
While official records on paper showed that the devices would remain within Taiwan's borders, it was stated that the final destination of the products was China, and the suspects issued forged commitment letters stating that the products would not be sent to restricted regions.
Revenue and Route of the Shipments
It was reported that 74 of the total 130 AI servers were delivered to customers in China, either directly or through Indonesia, Japan, and Hong Kong. As a result of these illegal sales, approximately 600 million New Taiwan Dollars, or 18.4 million USD, in revenue was generated.
Customs Inspection and Legal Process
The illegal organization was uncovered when they attempted to transport the remaining 56 servers through a Japanese company. When Taiwan customs officials requested a high-tech export license, the documents presented were found to be forged.
Charges of breach of trust and document forgery were brought against nine people, including an employee working within Nvidia Taiwan. Prison sentences ranging from 1.5 to 6 years are being sought for the suspects.