Super Micro shares slide after Taiwan raids widen Nvidia probe

Shares of Super Micro Computer Inc. fell sharply on Monday after Taiwanese authorities expanded an investigation into the alleged smuggling of Nvidia artificial intelligence chips into China using Super Micro servers. The stock dropped more than 9% in afternoon trading before recovering some losses and was about 6% lower by late trading.

The Keelung District Prosecutors Office said investigators searched the residences of six people and the premises of three affiliated companies. The office has summoned those individuals for questioning. Authorities also executed searches at several corporate locations, including Super Micro’s Taiwan office, data center operator Chief Telecom Inc. and distributor Albatron Technology Co.

Albatron confirmed in a stock exchange filing that investigators visited its premises and that the action had no financial impact. Super Micro said it is cooperating with law enforcement and government officials. The company added it is committed to protecting its advanced technologies and intellectual property and that its products “continued to be targeted in these matters.”

Authorities detained three people in May, accusing them of falsifying export documents for Super Micro servers equipped with Nvidia AI chips. Investigators allege the suspects shipped at least one batch of Nvidia chips to China via Japan and attempted to export about 50 servers, which were seized before leaving Taiwan.

Taiwan currently does not classify exports of AI chips to China as a criminal offense, so prosecutors must rely on other local laws when pursuing alleged illicit trade. Taipei is considering tightening export controls on AI chip sales to China to better align with U.S. restrictions that limit exports of advanced AI processors on national security grounds.

Taiwan plays a central role in the global semiconductor supply chain. Companies including Nvidia and Advanced Micro Devices rely on Taiwan Semiconductor Manufacturing Co. to produce their most advanced AI chips. Changes to export rules would give local prosecutors broader legal authority in cases involving the illicit trade of AI hardware.