Nvidia Employee Detained in Taiwan in Alleged AI Chip Smuggling Scheme
A Nvidia business manager was detained by Taiwanese authorities in July 2026 in connection with an alleged scheme to smuggle advanced AI servers equipped with Nvidia B300 chips to China through Hong Kong. The investigation reportedly also involves Taiwanese IT entrepreneurs and U.S. export control violations.
What happened
Taiwan's Keelung District Prosecutors Office detained a Nvidia business manager on July 24, 2026, in connection with an investigation into alleged smuggling of advanced AI server equipment to China, Hong Kong, and Macau.
The investigation reportedly began with three Taiwanese information technology entrepreneurs (surnamed You, Chen, and Wang) who purchased 50 Supermicro AI servers equipped with Nvidia B300 chips in May 2026 using shell companies and false documentation. The servers were then allegedly shipped to Japan and later routed through Hong Kong to mainland China.
The Nvidia manager was allegedly involved in facilitating exports of Nvidia AI chips to a specific Asian country, allegedly violating U.S. export control policy. He faces charges of false business records and other offenses under Taiwan's Criminal Code.
Reported impact
The investigation reportedly resulted in the detention of seven individuals, including the Nvidia manager, who was the seventh person detained in connection with the case.
Index analysis
The case reportedly originated from a Nvidia customer seeking to export advanced Nvidia AI chips to a specific Asian country, which the U.S. Department of Justice investigated and brought charges in March 2026.
Governance controls
Taiwan's Keelung District Prosecutors Office coordinated with the Taiwan Coast Guard and the Investigation Bureau to conduct multiple rounds of searches. The first search on May 20 led to the seizure of 50 Supermicro servers and approximately 9 million Taiwan dollars in cash.
The U.S. Department of Justice indicted Supermicro co-founder Liao Yixian, Taiwan business manager Zhang Ruishang, and external contractor Sun Tingwei in March 2026, alleging violations of U.S. export control regulations in transferring U.S. AI technology to China.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.