⚖️ Nvidia China chip smuggling cases: $2.5B alleged, 9 charged
Taiwan charged nine over forged papers; the US alleges $2.5B in servers. Supermicro says it is not a target; no verdict is on record. ⏳
By MrMoney, business desk · Desk editor Laima Ērkšķe-Kreicberga · · 4 min read
FILEDPhoto: The White House · Public domainWhat we know
- Taiwanese prosecutors in Keelung confirmed nine suspects were charged with breach of trust and document forgery over illegal exports of AI servers to China, Reuters reported, per Ars Technica.
- Ars Technica reports the US arrested Supermicro co-founder Wally Liaw in March for allegedly funneling $2.5 billion in restricted AI servers to China since 2024.
- Taiwan's investigation found 130 B300 servers were falsely documented as installed in Taiwan; 74 were delivered to Chinese customers and 56 were blocked by customs, per Reuters via Ars Technica.
- The Financial Times says Megaspeed has come under US scrutiny for allegedly smuggling Nvidia chips into China; Nvidia's internal probe found no evidence of wrongdoing.
- Supermicro says it is not a target of Taiwan's investigation and has not been accused of any wrongdoing.
Lawmakers want answers from Jensen Huang over his ties to Alice Huang, a Megaspeed executive whom the Financial Times says US officials believe was recruited as a spy. Axios reports Sen. Chris Coons promised a probe. In a memo to staff, Huang wrote that he was unfaithful to his wife, NBC News reported. China's Foreign Ministry calls the spy allegation unsubstantiated, per NBC News. Nvidia declined to comment on the government memo, the FT reported.
So here is the ledger of the chip cases themselves. MrMoney checked what the documents on file actually show: a short list of charges, one big alleged figure and a long trail of rule changes. The rules come first.
The rules that created the market
October 2022: US rules bar advanced chips; Nvidia answers with the A800
Reuters reported on Nov. 7, 2022 that US regulations set in early October effectively banned exports of advanced microchips to Chinese chipmakers. Nvidia confirmed it was offering the A800, which Reuters said cuts chip-to-chip transfer to 400 gigabytes per second from the A100's 600. The new rules restrict rates of 600 and up. Nvidia said the A800 'meets the U.S. Government's clear test for reduced export control'; a Commerce Department spokesperson declined to comment.
See the receipt (opens in a new tab)August 2025: a 15% cut for the government
The BBC reported on Aug. 11, 2025 that Nvidia and AMD agreed to pay the US government 15% of Chinese revenue from H20 and MI308 chip sales in exchange for export licenses. Nvidia told the BBC it follows the rules the US government sets. Critics quoted by the BBC said the arrangement raised security questions and compared it to an export tax.
See the receipt (opens in a new tab)January 2026: H200 sales cleared, with a 25% fee
The Commerce Department said on Jan. 13, 2026 that Nvidia's H200 chips could be shipped to China, the BBC reported, with Chinese customers required to show 'sufficient security procedures' and barred from military use. The Council on Foreign Relations calls the regulation 'strategically incoherent'. The Guardian, citing the Financial Times, reported that Chinese customs then blocked the shipments.
See the receipt (opens in a new tab)The cases on record
March 2026: Supermicro co-founder arrested over $2.5B in servers
Ars Technica reports the US arrested Supermicro co-founder Wally Liaw in March for allegedly funneling $2.5 billion in restricted AI servers to China since 2024. A plea or response from Liaw is not in the documents read. Supermicro says in its statement that it 'is not a target of their investigation and has not been accused of any wrongdoing.'
See the receipt (opens in a new tab)August 2026: Taiwan charges nine over forged export papers
Prosecutors in Keelung confirmed the suspects were charged with breach of trust and document forgery, Reuters reported per Ars Technica. The papers allegedly made 130 B300 servers look installed in Taiwan; 74 reached Chinese customers and 56 were stopped by customs. Ars reports the nine reportedly include an Nvidia senior manager and two Supermicro employees, and prosecutors released no names. Ars carries no Nvidia statement on the manager.
See the receipt (opens in a new tab)Megaspeed: scrutiny, $4.8bn in purchases, no charge in the documents
The Financial Times reports Megaspeed has come under US scrutiny for allegedly smuggling advanced Nvidia chips into China, and says Nvidia's internal probe found no evidence of wrongdoing. Al Jazeera, citing The New York Times, says Megaspeed bought about $4.8bn in equipment from Nvidia. The BBC reports Megaspeed told the Times its current leadership took the allegations seriously and hired outside legal advisers. No charge against Megaspeed appears in the documents read.
See the receipt (opens in a new tab)| Case | Who decided or alleged | Figure | Status in the documents |
|---|---|---|---|
| Supermicro co-founder arrest | US arrest, per Ars Technica | $2.5B in servers alleged | Arrest only; no plea or verdict reported |
| Taiwan indictment | Keelung prosecutors, per Reuters | 130 servers; 74 delivered, 56 blocked | Nine charged; outcome not reported |
| Megaspeed | US scrutiny, per the Financial Times | $4.8bn bought, per The New York Times | No charge reported; Nvidia's probe found no wrongdoing |
"is not a target of their investigation and has not been accused of any wrongdoing"
Supermicro statement, quoted by Ars Technica
The record has a gap. No US conviction, sentence or court-ordered seizure of Nvidia chips appears in the documents read, so none is claimed here. What is on file: arrests, indictments and rule changes. Nvidia's board has opened its own review of the Huang reporting, and a House deadline for a briefing date fell on Nov. 11, per Axios. You can judge the timeline for yourself.
Quick quiz · 3 questions
Earlier on file: Jensen Huang faces subpoena threat from House China committee · Nvidia hires Cuomo investigator Joon Kim to probe Jensen Huang · China opens Nvidia antitrust probe over $6.9B Mellanox deal
The Jensen Huang file
- Reported
Rep. John Moolenaar said Congress is prepared to subpoena Huang, with a Wednesday deadline on a briefing request, Bloomberg reported. Jensen Huang faces subpoena threat from House China committee
- Admitted
Huang told employees in a memo that he was unfaithful to his wife and said he supports the investigation, per BBC News. Nvidia hires Cuomo investigator Joon Kim to probe Jensen Huang
- Admitted
Wrote to Nvidia employees, "I was unfaithful to my wife"; the letter did not name the woman, Fox News reported. Biggest China spy cases ranked: Dongfan Chung, 188 months
- Admitted
Wrote to staff that he was unfaithful to his wife and would cooperate fully with the board's investigation. Nvidia board opens Jensen Huang probe; shares seen 4% lower
- Reported
CNBC reported three House Republican chairs asked Huang for a closed-door briefing on Nov 18. Congress presses Nvidia's Jensen Huang over Megaspeed claims
- Reported
Axios reported congressional scrutiny of Huang and a Nov 11 deadline set by House chairs to schedule a briefing. Congress presses Nvidia's Jensen Huang over Megaspeed claims
- Reported
Three House Republican committee leaders asked him to brief them on Nov 18 and reply by Nov 11, per the BBC. Nvidia board opens Jensen Huang probe; shares seen 4% lower
On file: The Jensen Huang file · The Nvidia file
The Ledger
On the record
- Taiwanese prosecutors charged nine people with breach of trust and document forgery over AI server exports to China, per Reuters via Ars Technica; the US arrested Wally Liaw in March, per Ars Technica.
Still rumour
- Any plea, verdict or sentence in the Liaw or Taiwan cases, the identity of the Nvidia manager, and any charge against Megaspeed are not confirmed in the documents read.
That's the record. The rest is rumour. - MrMoney
Next on the docket
More Business
PENDINGPhoto: Zachary Caraway · Pexels License⚖️ Jensen Huang faces subpoena threat from House China committee
Rep. Moolenaar says Huang has until end of Wednesday to answer a briefing request. No public reply was found in the reports read. ⏳
HIREDPhoto: Sora Shimazaki · Pexels License⚖️ Nvidia hires Cuomo investigator Joon Kim to probe Jensen Huang
Wachtell partner Kim will run the board's independent probe of Jensen Huang and Alice Huang. Beijing calls the spy claims smears. 🗣️
PROBEPhoto: KATRIN BOLOVTSOVA · Pexels License⚖️ China opens Nvidia antitrust probe over $6.9B Mellanox deal
China's regulator opened the probe in Sept 2025; no finding is in the record read. Huang is 'disappointed' by a chip-ban report. ⏳
Business · ⚖️ Nvidia, Jensen Huang face shareholder suit over Megaspeed
A proposed class action says Nvidia and Huang misled investors. Nvidia did not immediately respond to AP; no hearing date is reported. ⏳