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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n Taiwanese authorities raided the Taiwan office of Supermicro on Monday as they probed the alleged smuggling of Nvidia\u2019s AI chips to China, sending the server maker\u2019s shares down about 8 per cent.<\/p>\n Taiwan\u2019s Keelung District Prosecutors Office raided Supermicro\u2019s office as part of an ongoing investigation into allegedly illegal exports of the company\u2019s servers, according to a person familiar with the matter.<\/p>\n Taiwan\u2019s Albatron Technology Co, a distributor for Supermicro, confirmed in a filing on Monday that it had also been the target of an official search.<\/p>\n Supermicro said in a statement that it was \u201cworking closely with Taiwanese authorities on recent events\u201d, which it said underscored the importance of industry collaboration with governments to facilitate the enforcement of export laws. <\/p>\n \u201cSupermicro products continue to be targeted in these matters, and we continue to co-operate with law enforcement and government officials in Taiwan and other jurisdictions in which we operate to ensure our technology is distributed as lawfully intended,\u201d the company added.<\/p>\n Supermicro had confirmed last month that it was co-operating with US and Taiwanese authorities to \u201cprevent illicit diversion of server technology\u201d.<\/p>\n Washington has long leaned on Taiwan to more proactively police China\u2019s access to American AI chip technology. Re-exporting chips from Taiwan to China is not a criminal offence in Taiwan, although authorities are reportedly considering stricter export controls to align with the US.<\/p>\n In May, Supermicro said three suspects had been arrested and 50 servers had been seized in Taiwan after being sold by Supermicro to an authorised reseller of its products. The company has emphasised the risk of its products being diverted after they are sold to authorised customers. <\/p>\n San Jose-based Supermicro, one of a number of companies that package Nvidia\u2019s AI chips into servers, has come under scrutiny from US investigators in recent months.\u00a0<\/p>\n In March, US prosecutors charged three people, including Supermicro co-founder and board member Wally Liaw, with smuggling $2.5bn of Nvidia\u2019s AI chip servers to Chinese customers.\u00a0Liaw subsequently resigned from the company\u2019s board.\u00a0<\/p>\n Liaw and his co-defendant, contractor Willy Sun, have pleaded not guilty to charges at a New York federal court. A Taiwan-based Supermicro employee, Steven Chang, remained a fugitive, New York\u2019s federal prosecutor said at the time.<\/p>\n Nvidia\u2019s most advanced AI chips, used for training and running AI models, are banned from sale in China under US export controls. Restrictions on the flow of these chips are part of the race between Washington and Beijing to control the technology that powers frontier models such as Anthropic\u2019s Claude and OpenAI\u2019s ChatGPT.<\/p>\n Last week the FT reported that the prices of Nvidia\u2019s chips in China\u2019s black market had doubled this year as US authorities have cracked down on illicit exports.\u00a0<\/p>\n Nvidia did not immediately respond to a request for comment.<\/p>\n","protected":false},"excerpt":{"rendered":" Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Taiwanese authorities raided the Taiwan office of Supermicro on Monday as they probed the alleged smuggling of Nvidia\u2019s AI chips to China, sending the server maker\u2019s shares down about 8 per cent. Taiwan\u2019s Keelung District<\/p>\n","protected":false},"author":1,"featured_media":50764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[1942,6601,4148,24872,11523,24871,8974],"class_list":{"0":"post-50763","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-chip","9":"tag-offices","10":"tag-probe","11":"tag-raided","12":"tag-smuggling","13":"tag-supermicro","14":"tag-taiwan"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/50763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50763"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/50763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/50764"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}