A senior manager at Nvidia has been indicted by Taiwanese prosecutors over allegations of smuggling advanced AI chips to China. The case centers on 74 B300-equipped servers, which are believed to have been part of a scheme to bypass export controls. The accused is reportedly a senior figure within the company, and the case could lead to a five-year prison sentence if convicted.

The indictment follows an investigation that identified the executive as a central figure in the alleged smuggling operation. Authorities claim the individual worked with eight others to facilitate the illegal transfer of the servers. The B300 chips are considered high-performance components used in AI development, making them a target for export restrictions.

The case highlights growing concerns over the illicit transfer of technology to China, particularly in the AI sector. While no details have been released about the exact method of smuggling or the destination of the servers, the charges underscore the strict regulatory environment surrounding advanced semiconductor technology.

The legal proceedings are ongoing, and no further details have been provided on potential penalties or the broader implications for Nvidia’s operations.