Super Micro Computer Inc.’s Taiwan office was raided Monday as authorities expanded their investigation into alleged smuggling of Nvidia AI chips into China using the company’s servers.

SMCI shares fell sharply on the news. Taiwan’s Keelung District Prosecutors Office searched the residences of six individuals and premises of three affiliated companies, including Super Micro’s local operations. Prosecutors also summoned individuals for interviews.

Targeted Companies Confirm Searches

Distributor Albatron Technology confirmed it was searched in a regulatory filing and reported no material financial or operational impact. Data center operator Chief Telecom was also among the sites visited.

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Building on Prior Action

Bloomberg reported the Monday operation, which extends May 2026 raids by the same office, covering 12 locations and leading to the seizure of approximately 50 high-end Super Micro servers containing restricted Nvidia chips. Those actions targeted document falsification related to exports.

Super Micro has previously stated it is cooperating with Taiwanese authorities and was not charged as a company in earlier phases of the probe. The company did not immediately respond to requests for comment on the latest developments.

U.S. Controls Drive Regional Enforcement

The case reflects sustained U.S. pressure to restrict advanced AI semiconductors to China over national security concerns. Taiwan, a critical hub for semiconductor manufacturing and server assembly, does not yet treat AI chip exports to China as a standalone crime.

Authorities currently rely on laws covering document falsification. Taipei is actively considering legislation to criminalize such exports directly, which would provide stronger enforcement tools.

What’s Next

The latest raids highlight tightening scrutiny on downstream distribution in the AI supply chain. Further updates from prosecutors or Super Micro could clarify scope and potential charges.

For investors, the developments add to compliance risks even as demand for AI servers remains strong. SMCI’s stock reaction shows how regulatory headlines continue to influence sentiment in the sector.

Source: BeInCrypto