Albatron Technology Co Ltd

Supermicro shares have fallen 46% over the past month as the company faces a widening scandal over alleged smuggling of Nvidia GPUs to China. Taiwanese authorities raided Supermicro’s offices, the residences of six individuals, and three affiliated companies in the Keelung district, including data-center operator Chief Telecom and distributor Albatron Technology. The raids are part of an investigation linked to U.S. charges that co-founder Wally Liaw, sales manager Steven Chang, and contractor Willy Sun attempted to divert $2.5 billion in Nvidia-powered AI servers to China in violation of export controls. Supermicro has denied wrongdoing and is cooperating with authorities, but the controversy adds to a history of regulatory troubles, including a 2018 Nasdaq delisting and a 2020 accounting-violations fine. The company is also pursuing $7 billion in funding to address a $39 billion order backlog, including a $5 billion underwritten stock sale and a $2 billion at-the-market offering, which will dilute existing shareholders.

Taiwanese prosecutors have detained two Super Micro employees as part of an investigation into the alleged illegal export of advanced AI servers containing Nvidia chips to China. Two other employees were released on bail and barred from leaving Taiwan, while Super Micro distributor Albatron Technology has also been detained. Chief Revenue Officer Matthew Thauberger stated that Super Micro is not a target of the investigation and has been cooperating with authorities, placing all four employees on administrative leave. The detentions follow the May arrest of three individuals suspected of falsifying export documents to smuggle servers with Nvidia AI chips, with prosecutors alleging at least one batch was successfully shipped and about 50 servers were seized before leaving Taiwan.

Super Micro Computer shares fell more than 8% on Monday after Taiwanese authorities searched the company's offices as part of an investigation into alleged shipments of restricted Nvidia artificial intelligence chips to China. The investigation also included searches at the homes of six individuals and three related companies in Taiwan's Keelung district, and Super Micro said it is cooperating with local authorities. The reported searches also involved data center operator Chief Telecom and distributor Albatron Technology. The inquiry centers on allegations that Super Micro servers were used to move advanced Nvidia graphics processors into China despite U.S. export restrictions, marking Taiwan's first publicly disclosed enforcement effort connected to the broader U.S. campaign to limit China's access to advanced AI hardware. The development follows charges filed in March against three people associated with Super Micro, including one co-founder, over allegations of helping move about $2.5 billion worth of U.S. artificial intelligence technology to China in violation of export control laws.

Super Micro Computer shares fell 8% to $28.15 after Taiwan authorities raided the company's offices as part of an investigation into alleged smuggling of NVIDIA AI chips to China. The raid, which also targeted residences of six individuals and sites of three affiliated companies including Chief Telecom and Albatron Technology, marks a significant escalation in Taiwan's enforcement of chip export controls. Prosecutors allege that Super Micro-linked operators routed NVIDIA chips through Japan to China and seized roughly 50 servers before they left Taiwan. The company has said it is cooperating with authorities and that the search is part of an ongoing probe, not a finding of wrongdoing, but its board is already conducting an independent review of export-control-related transactions. The stock is now down 39% over the past month, with regulatory risk overshadowing a 123% year-over-year revenue increase to $10.24 billion and an $8.8 billion debt load ahead of its August 4 earnings report.