Taiwan has intensified its efforts to stop advanced AI hardware from reaching China, carrying out raids at the local offices of Super Micro Computer and several businesses connected to an investigation into the movement of servers equipped with NVIDIA chips, according to Bloomberg.

Investigators searched multiple business locations and the homes of six individuals as part of the inquiry. While prosecutors did not publicly identify those involved, a source familiar with the matter said Super Micro's Taiwan office was among the locations searched. The company said it is fully cooperating with investigators and emphasized that it works to safeguard its technology and ensure its products are sold in compliance with applicable laws. Shares fell about 8% following the announcement.

Bloomberg writes that the probe also reached Chief Telecom and Albatron Technology. Both companies acknowledged the searches, saying day-to-day operations were unaffected, although Albatron's shares dropped sharply.

The case marks another step in Taiwan's broader campaign to prevent restricted AI technology from being diverted to China. Earlier this year, authorities arrested three suspects accused of using fraudulent export paperwork involving Super Micro servers loaded with Nvidia AI processors. Officials believe at least one shipment ultimately made its way to China through Japan, while dozens of additional servers were intercepted before they could leave Taiwan.

Taiwan currently lacks a law that specifically criminalizes exporting AI chips to China, limiting prosecutors to pursuing related offenses such as document fraud. Lawmakers are now considering tougher export rules that would make such shipments illegal and give authorities stronger enforcement powers as Taiwan moves to more closely mirror U.S. restrictions on advanced semiconductor technology.

The latest developments also add to the uncertainty surrounding Super Micro.

Ever since Hindenburg Research published its report less than two years ago, "Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer," the company has struggled to shake a steady stream of damaging headlines.

The short seller accused Super Micro of accounting irregularities, undisclosed related-party transactions involving family members, export control concerns, and other governance failures, allegations the company has disputed.

Since then, Super Micro has faced delayed financial filings, scrutiny from regulators and most recently one of its co-founders charged in a scheme to divert roughly $2.5 billion in advanced Nvidia chips to China, according to an indictment unsealed earlier this year.