Taiwanese prosecutors have detained an Nvidia employee as part of a probe into alleged illegal exports of Supermicro servers to China.

On July 28, the Keelung District Prosecutors' Office released a statement saying a suspect with the surname Chang had been questioned following a search of his home and workplace late last week. He was later detained following concerns that he may flee or tamper with evidence or witnesses.

Prosecutors did not name Chang’s employer, but local media reported that he worked for Nvidia.

In response to a request for comment from DCD, an Nvidia spokesperson said: "Smuggling is a nonstarter. We primarily sell our products to well-known partners, including OEMs, who help us ensure that all sales comply with US export control rules. Even relatively small exporters and shipments are subject to thorough review and scrutiny on both sides of the globe, and any diverted products would have no service, support, or updates.”

The arrest comes several weeks after four Supermicro employees were detained for questioning in Taiwan regarding the company’s sale of products to an unnamed technology firm in the country. Two of the four employees have been detained pending a hearing, while the other two have been released on bail.

In early June 2026, Supermicro publicly declared it was “committed to protecting our advanced technologies and intellectual property,” revealing in a statement that it had been working “closely with the Taiwanese authorities” to prevent the "illicit diversion of our highly sought-after systems into the restricted China market.“

As a result of the collaboration, the authorities have seized 50 servers that had been “deceptively acquired after being sold by Supermicro to an authorized reseller,” the company said at the time.

In March, three people with ties to Supermicro were charged by the US Department of Justice for allegedly conspiring to smuggle Nvidia AI chips into China. The indictment claimed that some $2.5 billion in servers were shipped to China, despite Supermicro lacking a Commerce Department license.

The accused included Supermicro’s co-founder, Yih-Shyan “Wally” Liaw, who resigned from Supermicro’s board of directors following his arrest. In early April, he pleaded not guilty to the charges in a Manhattan federal court.