Taiwanese prosecutors on Wednesday ordered the detention of two employees of Super Micro Computer Inc. following this week’s raids of the company’s local offices, authorities said. The action is part of an investigation into alleged shipments of Nvidia Corp. chips to China.
Prosecutors are examining four Super Micro employees on suspicions of falsifying documents and breach of trust. The Keelung District Court approved the detention of two of those employees. Two other employees were released on bail but are barred from leaving Taiwan.
A manager at Super Micro distributor Albatron Technology Co. was also detained in connection with the investigation. Albatron confirmed the detention in a regulatory filing on Wednesday. Separately, an employee of data center operator Chief Telecom Inc. was questioned earlier this week.
Investigators conducted raids on Monday at the residences of all six individuals tied to the probe and at the offices of Super Micro, Albatron and Chief Telecom. Authorities described the actions as part of an ongoing inquiry into suspected China-directed chip smuggling.
Super Micro issued a statement on Monday saying it continues to cooperate with law enforcement and government officials in Taiwan and other jurisdictions.
The market reacted to the raids: Super Micro shares fell about 8% in U.S. trading on Monday. The stock recouped some losses on Tuesday and was trading around 1% lower in pre-market trading on Wednesday.
This week’s detentions follow three other arrests in May linked to the same investigation. Those detained in May are suspected of having sent at least one batch of Nvidia chips to China and of attempting to export roughly 50 servers, which were seized before they could leave the island.
Context and immediate developments
Authorities have targeted personnel across the supply chain in Taiwan, including staff at a major server maker, a distributor, and a data center operator. The probe centers on alleged export activities involving Nvidia chips and corresponding documentation irregularities.
Market and corporate responses
Super Micro has stated its cooperation with relevant authorities. The company’s shares experienced initial selling pressure after the raids, then partially recovered in subsequent trading sessions.
Key points
- Prosecutors detained two Super Micro employees and are investigating four employees for falsifying documents and breach of trust.
- A manager at distributor Albatron was detained and an employee of Chief Telecom was questioned; residences and corporate offices were raided as part of the probe.
- Super Micro shares dropped roughly 8% on the first trading day after the raids and were trading about 1% lower in pre-market the following Wednesday.
Risks and uncertainties
- Ongoing legal investigations could prolong operational disruption for companies involved - this may affect hardware vendors, distributors, and data center operators.
- Further detentions or seizures could create additional near-term volatility in the shares of companies directly implicated.
- Clarification of the allegations and any formal charges will determine next steps; current reporting does not establish final legal outcomes.
This report covers the actions and statements as provided by investigators and the companies involved. Where information is limited in current reporting, the account reflects those limits rather than drawing conclusions beyond the available facts.