Taiwanese authorities detained three individuals suspected of smuggling Nvidia's advanced artificial intelligence chips to China in its first public crackdown on such illegal exports, Bloomberg News reported Wednesday.
According to the report, the trio was allegedly caught falsifying documents related to exports of Super Micro Computer servers containing advanced Nvidia chips that are barred from sale to China without a license from the U.S.
However, of the 50 servers seized during the crackdown, at least one had made its way to Japan before being re-routed to Hong Kong for sale onward to China, the report said.
The alleged smugglers had again planned to send shipments via Japan, Bloomberg reported.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)