TAIPEI, June 30, 2026 – Taiwanese investigators have broadened their inquiry into the alleged illegal export of AI servers equipped with Nvidia chips, with a fresh round of raids targeting three companies, including the local office of Super Micro Computer Inc. (NASDAQ: SMCI). The move sent shockwaves through the market, erasing roughly $1.4 billion from the company's valuation in late trading.
Market Reaction
Super Micro shares dropped 6.5% to $28.63 in extended U.S. trading on heavy volume exceeding 75 million shares. The decline represented a loss of approximately $1.38 billion in equity value from the prior close. In contrast, Nvidia (NASDAQ: NVDA) shares rose 1.2% to $194.79, indicating the selloff was specific to Super Micro's compliance issues rather than any broader weakness in AI chip demand.
Expanded Investigation
The Keelung District Prosecutors Office conducted additional searches on Monday, following up on evidence gathered during a May 20 raid, according to Taiwan's Central News Agency. Six more suspects have been summoned on allegations of document forgery and breach of trust. The investigation centers on Super Micro AI servers with Nvidia chips that were allegedly exported using falsified documents through Northeast Asia en route to Hong Kong.
Local media reported that 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 valued at NT$700 million (approximately $22 million), equipped with Nvidia GB300 chips. Investigators suspect at least one batch of Nvidia AI chips may have reached China via Japan.
Compliance Risk Over Revenue Impact
The seized servers represent a mere 0.2% of Super Micro's lower-end fourth-quarter revenue forecast of $11 billion to $12.5 billion. While the $22 million hardware value is negligible for a company generating over $10 billion in quarterly server sales, the market's reaction underscores investor concern about compliance risk. The probe touching a Taiwan office, a listed distributor, and a data-center operator could increase costs for reseller checks, shipment reviews, and customer screening.
Legal and Regulatory Context
Under current Taiwanese law, unauthorized AI-chip exports to China are not classified as a separate offense, forcing prosecutors to rely on statutes like document fraud. However, Taipei is reportedly considering stricter AI-chip export regulations that could make smuggling chips to China a criminal offense for the first time.
Background of the Case
The investigation builds on earlier actions. In March, U.S. prosecutors charged three individuals linked to Super Micro, including co-founder Yih-Shyan Liaw, with helping smuggle at least $2.5 billion worth of U.S. AI technology to China. Super Micro was not named as a defendant and stated it cooperated with authorities.
Super Micro confirmed on May 28 that it assisted Taiwanese authorities in an investigation resulting in three arrests and the seizure of 50 servers. The company stated it had sold the servers to an authorized reseller and pledged continued cooperation with law enforcement in the U.S., Taiwan, and elsewhere.
Nvidia CEO Jensen Huang commented in May that Super Micro is responsible for its own compliance. Speaking in Taipei, Huang said Nvidia is "very rigorous" in 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."
