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Taiwan is cracking down on AI chip smuggling

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What just happened? Taiwanese authorities are seeking to detain three individuals accused of falsifying paperwork to move restricted AI servers into China, in what appears to be the island's first crackdown related to chip export violations. The case centers on server systems built by US-based Super Micro Computer, which integrate chips from Nvidia into data center infrastructure used to train and run AI models. These systems have been subject to US export restrictions since 2022 as part of efforts to limit China's access to advanced AI hardware.

Prosecutors say the three suspects attempted to bypass those controls by submittingfraudulent declarations about the equipment's final destination. In a statement, the Taiwan Keelung District Prosecutors' Office said the defendants "fully knew" that sales of the servers to China are "strictly regulated" by the US....

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