Prosecutors in Taiwan's port city of Keelung on Monday (Jan 8) formally indicted nine people, including employees of top technology firms Nvidia and Super Micro Computer (Supermicro), in connection with the illegal export of artificial intelligence (AI) servers to China.
According to the indictment, eight of the nine defendants, including one employee from Nvidia's Taiwan branch and two from Supermicro's local branch, face charges of breach of trust and document forgery. The defendants are accused of conspiring to illegally export high-end AI servers.
Prosecutors said that among the servers illegally exported, 50 were shipped in transit via Indonesia, 8 via Japan, and the rest were sent directly to China. Additionally, 56 other servers were seized at Taiwan's border. Three of the defendants also face additional charges of embezzlement.
The case comes as Taiwan, a semiconductor powerhouse, is the world's largest producer of advanced chips used for AI applications. The U.S. has tightened restrictions on exporting the most cutting-edge silicon chips, designed by Nvidia, to China due to national security concerns. However, in Taiwan, such conduct is not yet considered a criminal offense, prompting lawmakers and experts to call for legal changes, forcing prosecutors to rely on other statutes to address violations.
Shortly after the indictment was announced, Nvidia stated that its employees have always complied with the law and are cooperating with Taiwanese authorities to quickly clarify the allegations. Meanwhile, Supermicro said the charges relate to two former employees of its Taiwan branch, and that it has cooperated with authorities from the start and is not considered a subject of investigation or accused of wrongdoing.
Prosecutors are seeking sentences of up to five years in prison for seven defendants, who are said to have been “driven by excessive profit” in the smuggling case. They also recommended lighter sentences for two defendants who confessed and cooperated with the investigation. Taiwanese officials said the case not only increases compliance costs for businesses but also seriously damages the island's international image.
