Key TakeawaysJensen Huang called on Super Micro Computer (SMCI) to strengthen its export compliance measures during his arrival in Taipei over the weekend.Authorities in Taiwan have detained three individuals accused of falsifying export documents while shipping Super Micro AI servers with Nvidia chips to China.This incident follows a March U.S. federal indictment accusing Super Micro’s co-founder and accomplices of orchestrating a ~$2.5 billion smuggling operation involving Nvidia-powered servers destined for China.Huang disclosed that China represents part of Nvidia’s anticipated $200 billion addressable market for the forthcoming Vera CPU.While H200 chips have received export approval for China, no deliveries have occurred to Chinese buyers to date.Nvidia’s chief executive Jensen Huang touched down in Taipei over the weekend and immediately confronted the escalating concerns surrounding Super Micro Computer (SMCI) and alleged AI chip smuggling operations to China.NVIDIA Corporation, NVDAAddressing media at Songshan Airport, Huang emphasized that Nvidia maintains “rigorous” standards when briefing partners on U.S. export regulations. He expressed his expectation that Super Micro will “enhance and improve” its compliance framework to avoid future violations.His remarks follow an announcement from Taiwan’s Keelung District Prosecutors’ Office that three individuals were detained earlier this week. The suspects allegedly filed false shipping documents to facilitate the export of Super Micro servers—equipped with cutting-edge Nvidia AI processors—to destinations including China, Hong Kong, and Macau.Super Micro has not issued an immediate statement in response to media inquiries. The company previously indicated its dedication to safeguarding advanced American technology and pledged to reinforce its international trade compliance operations.This marks another chapter in Super Micro’s ongoing export control challenges. Earlier this year in March, federal prosecutors in the United States indicted Super Micro co-founder Yih-Shyan “Wally” Liaw alongside two associates for allegedly orchestrating a conspiracy to smuggle approximately $2.5 billion in Nvidia-equipped servers to China using shell entities across Southeast Asia.Liaw has entered a not guilty plea. Super Micro maintains that it is not a defendant in the case and is actively cooperating with authorities.While the Taiwan detention is administratively separate from the U.S. federal charges, both investigations share significant overlap. Each case involves similar alleged smuggling networks—utilizing intermediary companies to circumvent U.S. export restrictions and funnel prohibited Nvidia AI technology into China.A Bloomberg investigation published earlier this month identified a firm associated with Thailand’s national artificial intelligence initiative as potentially facilitating the transfer of Super Micro servers to Chinese entities. That reporting named Alibaba (BABA) among several ultimate recipients.China Remains Central to Nvidia’s Growth StrategyDespite ongoing export control controversies surrounding its products, Huang made clear that China continues to factor prominently in Nvidia’s future revenue projections.Speaking to journalists at the airport, Huang revealed that China is incorporated into the $200 billion total addressable market estimate he presented for Nvidia’s next-generation Vera CPU during the company’s earnings call on May 20th.Nvidia’s H200 processor has secured U.S. licensing for Chinese exports, with approximately ten Chinese companies authorized to acquire the technology. Yet remarkably, zero H200 units have reached any Chinese customer thus far.Huang characterized the Chinese market as “very important” and “very large,” stating it “would be terrific” to supply it. Nevertheless, recent discussions between President Trump and Chinese President Xi Jinping in Beijing this month yielded no resolution on export matters.Taiwan Events: GTC and ComputexHuang’s Taiwan visit precedes Nvidia’s GTC Taipei conference and his keynote address at Computex, slated for June 1st. Industry observers anticipate he will unveil detailed information about the software architecture underlying Nvidia’s Vera Rubin platform.He characterized the platform as “the largest product launch, probably in the history of Taiwan.” Every Vera Rubin NVL72 system incorporates nearly 2 million individual components and engages approximately 150 Taiwanese supply chain partners.According to current reports, Super Micro shipments connected to the smuggling investigations remain suspended, with both U.S. and Taiwan authorities continuing their active inquiries.The post Nvidia (NVDA) CEO Calls on Super Micro to Strengthen Export Controls Amid Smuggling Probe appeared first on Blockonomi.