Taiwan raids Super Micro in widening China chip smuggling probe
Taiwanese authorities raided the local offices of U.S. server maker Super Micro Computer as part of an expanding investigation into the suspected smuggling of advanced chips to China, potentially violating export controls.
Background
- **Super Micro Computer (Supermicro)**: a major US-based server and data-center hardware company (HQ in San Jose, CA), widely used in cloud computing and AI infrastructure. Its founder and CEO, Charles Liang, is originally from Taiwan.
- The raid: Taiwanese authorities searched Supermicro's offices in Taiwan as part of an investigation into whether the company helped smuggle advanced AI chips (likely Nvidia’s) into China, bypassing US export controls.
- The US has restricted export of high-end AI semiconductors to China since 2022, citing national security (these chips can train military-grade AI). Violations can trigger criminal penalties and cut off a company from US supply chains.
- Supermicro has faced similar allegations before; in 2024, reports claimed it was shipping motherboards with restricted chips to China via third parties. The company denies wrongdoing.
- This is the first known *physical* raid by Taiwan on Supermicro in this probe, signaling closer coordination with US enforcement efforts against chip smuggling.