TAIPEI, June 30, 2026, 04:04 (UTC+8)
- Taiwan prosecutors expanded their investigation into suspected Nvidia-chip server diversion, bringing in six more people after searches linked to three firms.
- Super Micro dropped 6.5% in late U.S. trading, wiping out roughly $1.4 billion in market value.
- The batch of seized servers in Taiwan is small relative to Super Micro’s sales outlook. Still, the market move suggests investors are worried about compliance risk more than revenue lost on the hardware.
Taiwanese prosecutors are expanding their AI server smuggling investigation beyond three traders to include the hardware supply chain tied to Super Micro Computer Inc NASDAQ:SMCI. That puts a sharper focus on how much of a risk premium investors should put on a fast-growing AI server name if its gear keeps getting flagged in export-control cases.
The Keelung District Prosecutors Office carried out another round of searches on Monday, according to Taiwan’s Central News Agency, after going through evidence from a May 20 raid. Six more suspects were called in over alleged document forgery and breach of trust. The investigation is tied to Super Micro AI servers with Nvidia Corp NASDAQ:NVDA chips that were said to have been exported with fake documents through Northeast Asia to Hong Kong, CNA reported.
Local media filled in a gap for the market. According to The Liberty Times, prosecutors raided Super Micro’s Taiwan office, Albatron Technology (TWO:5386), and Chief Telecom (TWO:6561). The May seizure involved 50 Super Micro AI servers sold for NT$700 million, equipped with Nvidia GB300 chips. Investigators think at least one batch of Nvidia AI chips may have ended up in China through Japan, the report said.
Super Micro dropped 6.5% to $28.63 in late U.S. trading. Volume was heavy, above 75 million shares. Based on that price and share number, the decline wiped out $1.38 billion in equity value since the previous close. Nvidia gained 1.2% to $194.79. The opposing moves suggest the selloff is tied to Super Micro’s compliance issue, not any broad weakness in AI chip demand.
| Measure | Figure | Investor read |
|---|---|---|
| Servers seized in May | 50 | Not a big number, but each one is expensive |
| Reported purchase value | NT$700 million | About $22 million with Monday’s NT$31.845 rate |
| Implied value per server | NT$14 million | Diverted AI kit moves big money even with few units |
| SMCI market value erased | About $1.38 billion | That’s 63 times the value of the seized servers |
| Batch as share of low end of Q4 revenue forecast | 0.2% | Stock drop is about controls risk, not Q4 revenue hit |
The calculation uses Taiwan’s Monday closing exchange of NT$31.845 per dollar and puts the seized servers at about NT$700 million. Super Micro’s May fourth-quarter revenue outlook was $11 billion to $12.5 billion, so the value in question is about 0.2% of the low end.
The raid matters because of that gap. $22 million worth of hardware isn’t going to move the needle for a business doing over $10 billion in server sales each quarter. But a probe touching a Taiwan office, a listed distributor and a data-center operator could affect how much it costs to do reseller checks, review shipments and screen customers.
Taiwanese law doesn’t currently classify unauthorized AI-chip exports to China as a separate offense, according to a Taipei Times report this month that cited Bloomberg. Prosecutors have to rely on other statutes, like document fraud, when taking action. Taipei is considering stricter AI-chip export rules that could soon make smuggling chips to China a criminal offense for the first time.
| Date | Action | People or assets | Market issue |
|---|---|---|---|
| March 19 | U.S. prosecutors filed charges against three with Super Micro links | Accused in $2.5 billion plot | U.S. export-control risks |
| May 20 | Taiwan authorities launched initial searches | Held three suspects; seized 50 servers | Reseller scrutiny and cargo checks |
| June 29 | Taiwan carried out more searches | Questioned six more; searched three firm sites | Wider supply chain probe |
In March, U.S. prosecutors charged three people linked to Super Micro, among them co-founder Yih-Shyan Liaw, accusing them of helping smuggle at least $2.5 billion worth of U.S. AI tech to China. Reuters reported at the time that Super Micro wasn’t listed as a defendant and said it cooperated with authorities.
Super Micro said May 28 it worked with authorities in Taiwan on an investigation that ended with three arrests and 50 servers seized. The company said it first sold the servers to an authorized reseller and plans to keep working with law enforcement in the US, Taiwan and elsewhere.
Nvidia CEO Jensen Huang said in May that Super Micro is responsible for its own compliance. Speaking to reporters in Taipei, Huang said Nvidia is “very rigorous” about explaining laws to its partners. “Ultimately, Super Micro has to run their own company,” Huang said. “I hope that they will enhance and improve their regulation compliance and avoid that from happening in the future.” Reuters
