On July 28, according to multiple media reports in Taiwan, China, Taiwan's prosecutors are investigating a case of suspected smuggling of high-end AI servers. A senior business development manager of Nvidia has been detained by the court and is prohibited from receiving and communicating.

The detained person is Zhang Denglong, a senior business development manager at NVIDIA. Accused of forgery of documents, breach of trust, and assisting in the illegal outflow of GB300 (commonly known as B300 in the industry) AI chip servers under US export control, he was summoned for questioning by the prosecutor on July 24th. After questioning, the prosecutor believed that his suspected criminal circumstances were significant and there was a risk of collusion or destruction of evidence. Therefore, he applied to the court for detention and was approved, and was prohibited from receiving and communicating. Up to now, a total of 7 individuals involved in the case have been restricted from meeting and are under ongoing investigation.

It is reported that the involved Nvidia B300 chip has skyrocketed in black market prices to over 8 million yuan, and a single server can make a huge profit of about 27 million New Taiwan dollars (approximately 5.64 million yuan) by reselling it.

The case originated on May 20th this year, when law enforcement agencies raided 12 warehouses and office locations, seized 50 Super Micro servers equipped with Nvidia GB300 high-end AI chips at warehouses in Keelung and Neihu, and seized 9 million New Taiwan dollars in cash involved in the case. Three downstream operators were detained on the spot. The total value of the 50 servers involved in the case is 700 million New Taiwan Dollars, equivalent to approximately 146 million Chinese Yuan.

On June 29, we searched the Taiwan, China Branch of Ultramicro Computer, Qingyun Technology, Shifang Telecom and other related enterprises, and interviewed six executives and salesmen. Finally, the general manager of Qingyun Technology and two business leaders of Supermicro Computer were ordered to be detained, while the rest of the personnel were released on bail after paying a deposit, fully locking in the entire chain of procurement, data center docking, and customs declaration for export.

On July 24th, the investigating authorities identified Zhang Denglong, a senior business manager at Nvidia, as a key breakthrough point in the approval process, and simultaneously searched his office and personal residence. After questioning, he officially applied for detention.

After the relevant enterprises completed the verification of customer identity and equipment usage, the servers were immediately dismantled and transported away from the data center. The individuals involved subsequently exported the equipment from Taiwan Province under the pretext of exporting to Japan, and then transported it to banned countries through Japan, Hong Kong, and other places.

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