Nvidia Taiwan distribution manager indicted over alleged AI server smuggling to China

Taiwan prosecutors have indicted a senior distribution manager at Nvidia's Taiwan office, accusing him of running a scheme that allegedly moved more than 100 advanced AI servers into China by using third-country routing and forged paperwork to evade U.S. export controls. The Keelung District Prosecutors' Office said it brought charges against nine people on August 24, including allegations of document forgery and breach of trust. The Nvidia manager, identified by the surname Chang, was detained in July as the probe intensified. Prosecutors allege the group shipped high-performance Nvidia GPU-based servers, including B300 and Blackwell models, through transit points such as Japan and Indonesia before they reached China. Authorities said falsified documents were used to make the exports appear compliant. The U.S. first imposed broad restrictions on advanced AI chips headed to China in 2022 and has tightened the rules several times since, turning top-tier Nvidia GPUs into sought-after restricted items for Chinese buyers. Prosecutors are seeking prison terms of up to six years. Seven of the nine suspects had already been detained before the indictment. The case comes as enforcement efforts expand. In March 2026, U.S. authorities charged three individuals tied to Supermicro in a related alleged scheme valued at more than $2.5 billion, describing a network that relied on third-party intermediaries to channel controlled technology into China. Taiwan's case stands out because of Chang's senior role inside Nvidia's Taiwan operations, with access to supply-chain and inventory systems, rather than acting as an external reseller. Nvidia had not publicly commented on the charges as of the indictment. For Taiwan, the prosecution underscores a tougher stance in policing the U.S.-led effort to restrict advanced technology flows to China. Taiwan is home to TSMC, which manufactures Nvidia's most advanced chips, and bringing criminal charges involving an employee of a major customer signals heightened enforcement attention in Taipei.