Taiwan suspects Nvidia chips smuggled to China via Japan

Japan is one of many locations in Asia where Chinese companies access American AI chips -- by renting hardware that's owned by foreign firms and installed in overseas data centers. Taiwan prosecutors suspect that three individuals successfully smuggled at least one shipment of Nvidia artificial intelligence chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by Taiwan's Keelung District Prosecutors Office for allegedly falsifying documents related to exports of Super Micro Computer servers containing advanced Nvidia chips, which the U.S. has barred from sale to China without a license from Washington. The move marked the island democracy's first public crackdown on AI chip diversion after years of pressure from the U.S. to take a more active role in curtailing China's tech access. When Taiwan authorities apprehended the three defendants -- who've now been officially detained -- they also seized about 50 servers for which they accuse the trio of preparing fraudulent export documents. But at least one shipment had already gone through Taiwan customs, according to the people familiar with the matter, who requested anonymity to speak about an ongoing criminal investigation.