Some Servers Were Shipped Directly From Taiwan, While Others Were Routed Through Indonesia

Taiwan's Keelung District Prosecutors' Office has charged nine people, including a senior Nvidia executive in Taiwan, over the alleged illegal smuggling of advanced AI chips to China. The executive is accused of playing a key role in the operation involving 130 B300 AI servers, which contain some of Nvidia's most advanced chips and are subject to US export controls aimed at limiting China's AI development capacity. According to the prosecutors, 74 of the 130 smuggled servers ultimately reached Chinese customers.

Some servers were shipped directly from Taiwan, while others were routed through Indonesia or Japan. The remaining 56 servers were intercepted by Taiwanese customs authorities. The US export restrictions on advanced AI chips and the servers containing them have created a lucrative black market, with prices for such products reportedly doubling or tripling on the black market.

The B300 servers are used for training AI models. The case highlights the ongoing tensions between US efforts to curb China's access to cutting-edge technology and the demand for such products in the Chinese market. The investigation is ongoing, with the nine individuals now facing legal proceedings in Taiwan.