Nvidia and Supermicro Executives Charged in AI Chip Smuggling to China
Taiwan prosecutors charged eight people including a senior Nvidia manager and two Supermicro executives with smuggling AI server chips containing Nvidia B300 processors to China through transshipment via Japan and Indonesia, evading U.S. trade controls. The scheme involved forged documents, fake data center arrangements, and internal coordination across supply chain companies to circumvent export restrictions.
What happened
Taiwan prosecutors charged Nvidia senior manager Zhang Denglong and seven others with smuggling 74 Nvidia B300 AI servers through Japan and Indonesia to China in violation of U.S. export controls. Authorities also seized an additional 56 servers that were intercepted before shipment.
The scheme involved Supermicro executives Lin Changchun and Wang Xiangyi coordinating with Nvidia and intermediary companies to evade the B300 export-control requirements, including forging documents and falsifying data center rental agreements to create the appearance that servers would remain in Taiwan.
Reported impact
The Keelung District Prosecutors Office stated the conspiracy caused "serious damage to Taiwan's international image" and "increased corporate compliance costs."
Index analysis
The scheme used multiple entities across the supply chain to circumvent Supermicro's end-user declaration requirements and Nvidia's white-list approval process. Supermicro requires customers purchasing large quantities to submit to site verification by company representatives, which was manipulated through fraudulent documentation.
Internal actors at Supermicro and Nvidia used their positions to approve shipments and quotas by coordinating false claims that servers would be installed at leased data center space operated by Shifang Telecom, despite the facility lacking adequate power, server racks, and bandwidth.
Governance controls
Prosecutors described the scheme as planned and premeditated, involving coordination across six parties across multiple jurisdictions. The conspiracy used shell companies, falsified leasing agreements presented as legitimate contracts, and data center site visits designed to deceive verification auditors.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.