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Taiwan Charges Nine Over Smuggled AI Servers, Including an Nvidia Senior Manager
Taiwan has charged nine individuals, including a senior Nvidia manager and two Supermicro employees, for allegedly forging documents to illegally ship high-end AI servers to China, violating US export controls. A Taiwanese customs officer's detection of irregularities led to the investigation, which uncovered that 74 servers were delivered to China while 56 were intercepted. Nvidia CEO Jensen Huang had previously criticized Supermicro's compliance, and Supermicro stated its cooperation with authorities led to the arrests.
Nine Charged in Taiwan Over Smuggled AI Servers, With NVIDIA and Super Micro Staff Among Them
Taiwanese prosecutors have indicted nine individuals, including staff from NVIDIA and Super Micro, for allegedly smuggling AI servers to China. The defendants are accused of colluding for profit and circumventing strict export control procedures, despite being aware of the rules. This case highlights Taiwan's critical role in the AI supply chain as a final checkpoint for chip exports.
Taiwanese authorities detain Nvidia employee for alleged attempt to smuggle AI chips into China
An Nvidia employee in Taiwan, identified as 'Chang,' has been detained on suspicion of falsifying documents to export approximately 50 Super Micro servers containing Nvidia AI chips to China. This incident is part of a broader investigation into potential AI chip smuggling routes. Nvidia has stated that smuggling is unacceptable and that all sales comply with US export control rules.
Evening Reading - June 29, 2026
This edition of Shacknews Evening Reading covers various gaming news, including reviews for Star Fox and Fatal Fury: City of the Wolves, a roguelike called Poly Fighter, and an investigation into Super Micro and NVIDIA. It also notes the resignation of Supermassive Games CEO Robert Henrysson and announces the Tekken World Tour Finals for EVO Singapore 2027.
Printer-based scheme attempted to smuggle $8,967,742 worth of cocaine into Australia
An Australian man has been sentenced to nine years in prison for his role in a scheme to smuggle 22.4kg of cocaine into the country hidden inside printers. The Australian Federal Police intercepted the shipment in Melbourne in 2017. The printers used in the smuggling operation were reportedly Xerox machines, and the cocaine had an estimated street value of up to $12.4 million AUD.
Supermicro (SMCI) Q3 FY26 earnings results beat EPS expectations, miss revenue estimates
Supermicro announced its Q3 FY26 financial results, reporting earnings per share that exceeded analyst expectations. However, the company's revenue for the quarter fell short of the estimated targets.
Supermicro 'committed to protecting America’s advanced technologies and intellectual property' as investigation into former employees over alleged AI tech shipments to China begins
Supermicro is under investigation following charges against three former employees accused of illegally shipping AI servers containing GPUs to China. The company has stated its commitment to protecting advanced technologies and intellectual property, initiating an internal review of its global trade compliance program. The alleged scheme involved diverting approximately $510 million worth of servers to China.
Tossing servers for sport: IT experts are once again seeing how far they can fling a server rack
CloudFest, an IT infrastructure event held annually in Europa Park, Germany, features a unique competition where IT experts toss server racks. This tradition, now in its tenth year, awards a golden WSTC Belt to the winners, with qualifiers and a grand final event.
The co-founder of a major datacenter company has been charged with smuggling $2.5 billion in AI chips to China
Three businessmen, including Supermicro co-founder Yih-Shyan Liaw, have been charged by the US government for allegedly smuggling $2.5 billion worth of AI chips and computer servers to China. The scheme involved removing labels and serial numbers to conceal the origin of the sophisticated US technology. The charges carry potential prison sentences and highlight the high demand and value of AI chips globally.
