Raids at Super Micro's Taiwan office cause SMCI shares to plummet: escalation of investigation into Nvidia chip smuggling
On Monday, the Taiwan office of Super Micro Computer Inc. was raided. This is part of an expanding investigation into an alleged scheme to smuggle Nvidia chips for artificial intelligence, which investigators believe may have been illegally exported to China using the company's servers.
The news immediately hit stock prices: SMCI shares plunged sharply. The Keelung District Prosecutor's Office in Taiwan conducted searches at the addresses of six individuals involved in the case, as well as at the offices of three affiliated companies, including the local subsidiary of Super Micro. Several individuals have already been summoned to testify.
Companies confirmed the raids
Distributor Albatron Technology confirmed the searches in a statement to regulators but emphasized that they did not affect its financial condition or operational activities. Searches also took place at data center operator Chief Telecom. Both companies, apparently, do not yet consider themselves subjects of the charges.
Continuation of raids: from May to a new phase
This operation is a direct continuation of the large-scale raids conducted in May 2026. At that time, searches were carried out at 12 locations, and about 50 Super Micro servers with Nvidia chips subject to export restrictions were seized. The main focus of the investigation is the possible falsification of documents to circumvent sanctions when exporting high-tech equipment.
Super Micro previously stated that it was fully cooperating with Taiwanese authorities and denied its responsibility as a company in the early stages of the investigation. Company representatives are currently refraining from commenting on the latest events.
US pressure and tightening control in the region
This case is a clear indicator of ongoing pressure from the United States, which restricts the supply of advanced semiconductors for AI to China on security grounds. Taiwan, which holds key positions in global chip manufacturing and server assembly, does not yet consider the export of AI chips to China a separate violation of the law, but authorities are currently acting under articles on document forgery.
However, Taipei is already considering the possibility of a direct legislative ban on the export of AI chips to China, which could drastically tighten control throughout the entire supply chain.
What's next?
The recent raids indicate a systemic tightening of control over supply channels in the AI industry. New statements from prosecutors or Super Micro itself could shed light on the scale of the case and possible charges. Investors, despite sustained demand for AI servers, see additional regulatory risks for the company in what is happening. As the reaction of SMCI shares shows, news about inspections still has a strong impact on market sentiment.
My analysis: The market is overreacting to each new episode of this investigation. So far, there are no direct charges against Super Micro as a company—all actions are directed against alleged intermediaries. However, the very fact of ongoing raids creates a powerful negative backdrop. Investors should closely monitor developments: if the investigation moves into the realm of criminal charges against SMCI management, the stock decline could become much deeper than what we are seeing now. The current volatility is the price of uncertainty.