Taiwan authorities have widened their investigation into the alleged smuggling of Nvidia NASDAQ:NVDA chips into China through Super Micro Computer NASDAQ:SMCI servers. Investigators raided Super Micro's Taiwan office, several local affiliates, and the residences of six people on Monday, according to the Keelung District Prosecutors Office. The move could mark a deeper phase in Taiwan's first public crackdown on AI chip diversion, as pressure grows from Washington to limit China's access to advanced technology.
Super Micro said it is cooperating with Taiwanese authorities and working to ensure its technology is distributed lawfully. The probe also reached Chief Telecom and Albatron Technology, with both companies indicating cooperation with investigators. Super Micro shares fell 8% in US trading, while Albatron dropped 10% in Taipei and Chief Telecom slid more than 2%, suggesting investors may be pricing in fresh headline risk around AI server exports.
For investors, the issue could keep weighing on Super Micro's valuation even as its AI-server fundamentals remain favorable. Taiwan does not currently treat AI chip exports to China as a crime, but officials are considering tougher rules that could give prosecutors more tools to pursue alleged illicit AI hardware trade. Any move to tighten AI chip sales to China could also draw a response from Beijing, which continues to claim Taiwan as its own territory, a position Taiwan's self-ruled government strongly rejects.