Shares of Super Micro Computer NASDAQ:SMCI fell more than 8% on Monday after Taiwanese authorities searched the company's offices as part of an investigation tied to alleged shipments of restricted Nvidia (NVDA) artificial intelligence chips to China.
The investigation also included searches at the homes of six individuals and three related companies in Taiwan's Keelung district. Super Micro Computer NASDAQ:SMCI said it is cooperating with local authorities. The reported searches also involved data center operator Chief Telecom and distributor Albatron Technology.
The reported inquiry centers on allegations that Super Micro Computer NASDAQ:SMCI servers were used to move advanced Nvidia (NVDA) graphics processors into China despite U.S. export restrictions. The case marks Taiwan's first publicly disclosed enforcement effort connected to the broader U.S. campaign aimed at limiting China's access to advanced AI hardware.
The latest development follows charges filed in March against three people associated with Super Micro Computer NASDAQ:SMCI, including one co-founder, over allegations of helping move about $2.5 billion worth of U.S. artificial intelligence technology to China in violation of export control laws.