An Nvidia (NVDA) employee has been detained by Taiwanese prosecutors as part of an investigation into the alleged smuggling of advanced AI chips to China, Bloomberg reported Tuesday, citing people familiar with the matter.
Bloomberg said investigators searched the employee's home and desk at Nvidia's Taipei office on July 24. A court later approved prosecutors' request to detain the employee, identified publicly only by the surname Chang, on allegations of forgery and breach of trust.
According to the report, investigators are examining whether servers containing Nvidia AI chips were exported from Taiwan using falsified documentation before ultimately reaching China.
Bloomberg said prosecutors have not accused Nvidia (NVDA) of wrongdoing. The report added that the case is one of at least eight investigations across four jurisdictions into the alleged smuggling of Nvidia AI chips as authorities seek to crack down on efforts to circumvent US export controls on advanced semiconductors destined for China.
Taiwan previously detained three individuals in May in connection with the alleged smuggling of Super Micro Computer (SMCI) servers containing Nvidia AI chips to China, Bloomberg reported.
The US government has banned the sale of most Nvidia AI chips to China without official approval over concerns the semiconductors could give Beijing a military advantage.
Nvidia representatives did not immediately respond to MT Newswires' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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