What happened
Super Micro said on Wednesday that two workers at its Taiwan unit were detained pending a court hearing, while two additional staff who had been questioned were released on bail. The actions follow questioning by prosecutors in Taiwan examining the alleged illegal export of advanced AI servers made by Super Micro that contain Nvidia chips, which are subject to U.S. export controls prohibiting exports to China.
Scope of the inquiry
Taiwan’s Keelung District Prosecutors’ Office said it had carried out a second round of searches in the investigation. Four of the employees who were questioned on June 29 were among six people interrogated earlier in the week. Prosecutors said the six were questioned over alleged document forgery and breach of trust. Searches were conducted at 12 locations, including the homes of six suspects and the offices of three companies.
The three corporate locations searched were Super Micro Taiwan, Albatron Technology - identified as Super Micro’s distributor in Taiwan - and Chief Telecom, a data centre operator.
Company response
In a letter to customers in the United States, Super Micro Chief Revenue Officer Matthew Thauberger said the four employees had been questioned in connection with what he described as a Taiwanese investigation involving the company’s sale of products to a technology company in Taiwan. Thauberger wrote: "Two of the four employees have been detained pending a hearing, and the other two have been released on bail."
Thauberger also stated: "Super Micro is not a target of this investigation," and said the company had been working with Taiwanese authorities for several months. According to the letter, Super Micro provided access to the employees’ desks and electronic devices and placed all four employees on administrative leave while the investigation continues.
Earlier developments
In May, Taiwanese prosecutors carried out the first phase of the investigation and detained three people suspected of illegally exporting Super Micro’s high-end AI servers equipped with Nvidia chips. Those three individuals remain in detention.
Super Micro said in May that cooperation with Taiwanese authorities over alleged diversion of its servers into the restricted Chinese market led to the seizure of 50 servers. The company said those units had been deceptively acquired after being sold to an authorised reseller.
Separately, in March the U.S. Justice Department charged three people associated with Super Micro, including one of its co-founders, alleging they helped smuggle at least $2.5 billion worth of U.S. AI technology to China in violation of U.S. export laws.
Context noted by authorities and company
Taiwan plays a central role in producing advanced chips used in AI applications. Prosecutors in Taiwan have tightened export controls in recent years to prevent advanced technology and know-how from reaching China. The recent searches, detentions, and prior seizures form part of ongoing enforcement efforts in that regulatory environment.
This report compiles company statements and public actions by Taiwanese prosecutors as disclosed by Super Micro and authorities. The details above reflect the developments and statements provided by those parties and reported by prosecutors.