Taiwanese prosecutors have indicted nine individuals for illegally smuggling Nvidia B300 GPUs to China. The scheme involved Flying Tiger Tech and Albatron Technology, which bypassed Supermicro's strict export controls to facilitate the illicit shipments.
The defendants deceived inspectors by leasing colocation space at Chief Telecom that lacked the power and bandwidth for the 130 units ordered. Despite these deficiencies, a Supermicro manager coached the firm to secure approval for the $21.21 million sale.
While 74 units reached China via Indonesia and Japan, customs flagged the final 56 units. Supermicro stated its senior management was unaware of the diversion, which included a secondary scheme involving 39 million Taiwanese dollars in fraudulent billing.