Taiwanese prosecutors have detained an Nvidia employee as part of an ongoing investigation into the alleged smuggling of AI servers equipped with restricted Nvidia chips to China. This marks the third round of detentions in the probe, which now involves seven individuals, including employees from Super Micro and Albatron Technology.

The investigation, which began in May, focuses on the falsification of paperwork to export around 50 Super Micro servers to China, Macau, and Hong Kong, in violation of U.S. export controls. Nvidia stated that smuggling is a "nonstarter" and that its products are sold to partners who ensure compliance with U.S. export rules. The U.S. has banned advanced Nvidia AI chips from reaching China since 2022, citing national security concerns. Taiwan is currently weighing tighter policies on AI chip sales to China.