Nvidia Chip Server Sales to China Case: Qing Yun CEO and Two Supermicro Employees Detained

(CNA) Keelung, June 30 - The Keelung District Prosecutors Office, investigating the illegal resale of servers equipped with high-end Nvidia chips to mainland China, Hong Kong, and Macau, searched the Taiwan Asia-Pacific headquarters of Supermicro, Qing Yun Technology, and Espressif Systems, and summoned six individuals for questioning. After interrogation by prosecutors, the CEO of Qing Yun Technology and two Supermicro employees were detained.

After analyzing the relevant evidence, prosecutors launched a second wave of action yesterday, searching the Taiwan Asia-Pacific headquarters of Supermicro Computer, Inc. (Supermicro) in Zhonghe District, New Taipei City, the Supermicro distributor Qing Yun International Technology Co., Ltd., Espressif Systems Co., Ltd., and the residences of related individuals, a total of 12 locations.

Investigators also summoned the CEO of Qing Yun Technology, identified by the surname Lu, four sales personnel from Supermicro, and one individual surnamed Cai from Espressif Systems who was hospitalized, for a total of six people. After questioning, all but Mr. Cai were transferred to the Keelung District Prosecutors Office.

After interrogation by prosecutors, Wang and Zhu from Supermicro were granted bail of NT$100,000 and NT$50,000 respectively early this morning on suspicion of document forgery and breach of trust. Prosecutors applied to the Keelung District Court for the detention of Lu, and Supermicro employees Lin and Wang. After a detention hearing, the judge determined that the three individuals were heavily suspected of committing crimes and that there was sufficient reason to believe they were a flight risk and might tamper with evidence, thus ordering their detention.

Qing Yun Technology issued a significant news announcement stating that the company is fully cooperating with the investigation by judicial authorities, that its operations are normal, and that there is no significant impact on its financial or business operations. Espressif Systems issued a significant news announcement stating that as a data center colocation service provider, the company has no authority to interfere with customer equipment, is fully cooperating with the investigation by judicial authorities, that its operations are normal, and that there is no significant impact on its financial or business operations.

Lu and two others, aware that high-end AI servers produced by Supermicro, equipped with specific high-end Nvidia chips, are strictly controlled by the United States and completely prohibited from being sold to mainland China, Hong Kong, and Macau, intended to profit by falsely declaring exports and reselling them to these regions.

Following the first wave of searches and summonses on May 20, investigators applied to the court for the detention of the company's responsible person or actual controller, You, Wang, and Chen, which was approved. They also seized 50 servers equipped with high-end Nvidia chips and over NT$9 million in cash and other evidence. (Editor: Chen Ren-hua) 1150630

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