China’s H200 hunger drives Nvidia chip smugglers to Japan route
Taiwanese authorities have dismantled a smuggling ring that funneled Nvidia AI chips through Japan to China, arresting three suspects. The operation resulted in the seizure of 50 servers valued at over $15 million. This incident marks a significant enforcement action against semiconductor smuggling amid rising gray-market activity due to US export restrictions.
- ▪Three suspects were arrested for using falsified export documents to smuggle Nvidia AI servers into China.
- ▪The smuggling route through Japan is a new development in the ongoing issue of semiconductor smuggling.
- ▪Taiwan's coast guard seized 50 servers, luxury cars, and cash during the operation.
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Taiwanese authorities have busted a smuggling ring that used Japan as a waypoint to funnel Super Micro Computer servers loaded with high-end Nvidia artificial intelligence (AI) chips into China, arresting three suspects and seizing roughly 50 servers worth more than US$15 million. It is the first time that smugglers have been found to be using the Japan route. In March, a US police operation exposed a separate transshipment network running through Taiwan, Thailand and Hong Kong, in which a co-founder of Super Micro Computer was arrested.
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