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Taiwanese prosecutors indict nine people for forging documents to illegally export high-end AI servers to China.

Taiwanese prosecutors have indicted nine individuals, including a senior manager from Nvidia and two employees from Supermicro, for allegedly forging documents to bypass US export controls on high-end AI servers. The investigation revealed that co-conspirators attempted to falsify records to show that 130 B300 servers were installed at a Taiwan facility, when 74 of those servers were actually exported to Chinese customers. The scheme allowed China to gain access to restricted Nvidia chips despite the US government's efforts to protect national security by staying ahead in the AI race. While Supermicro is not a target of the probe, the company has confirmed it is cooperating with authorities and has already fired several employees involved in the scandal. Taiwanese officials stated that the indicted employees were fully aware of the rigorous internal control procedures of both Nvidia and Supermicro. The scandal highlights the challenges of enforcing export controls in an overburdened system where fraudulent diversions were not immediately flagged by top executives or customs officials.

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