Nine people in Taiwan face indictment for running a shell-company scheme that diverted dozens of Nvidia B300 AI servers toward China.
Taiwan's Keelung District Prosecutors' Office charged nine individuals in a case built around a five-step plan to dodge Nvidia and Supermicro's export controls. A trading firm called Flying Tiger Tech won whitelist status through a Supermicro distributor, then ordered 130 B300 servers, claiming they would stay in Taiwan. To pass the mandatory on-site inspection required for orders over eight units, Flying Tiger leased colocation space it never actually built out - inspectors visited in September 2025 and found a site with nowhere near the power or racks for 130 machines, yet no one flagged it. Insiders at both Nvidia Taiwan and Supermicro's Taiwan subsidiary allegedly helped push the paperwork through, with one manager reportedly taking a cut of the commissions instead of reporting what he saw.
Supermicro approved the sale in three batches, but only the first 74 units actually moved - 16 shipped straight to China, 50 were routed through Indonesia, and 8 passed through a Japan-based shell before an attempted leg to Hong Kong and China, netting roughly $21.2 million in profit. The remaining 56 units never left Japan: customs officials flagged the shipment and demanded an export permit, exposing forged Supermicro documentation and unraveling the scheme before more hardware could cross the border.
Supermicro says its own audit - covering a separate US smuggling case - found no evidence senior leadership knew about banned sales, but this scheme surfaced only because Taiwanese prosecutors caught it, not because the company's compliance process did.