It has been revealed that an NVIDIA employee has been arrested in connection with the investigation into the smuggling of NVIDIA GPUs into China via Japan.

In May 2026, Taiwanese prosecutors arrested three people for
Based on the investigation of illegal exits of foreign nationals, high level AI investigation equipment was launched on July 24, 2018. The third wave of investigation was conducted, consideration was given to the protection of the public interest, and a moderate public explanation was required.
(PDF file) https://www.klc.moj.gov.tw/media/447330/1150728Basic Detective Vehicle Illegal Exit High Floor Inspection Device Plan Third Wave Enforcement Newspaper Draft.pdf
The third wave of the search for the third wave of the ``Zhongzhongguo'', a high-level AI inquiry device for bright business management and water drainage, has arrived! Judgment Stamp - Mirror Report
https://www.mirrordaily.news/story/75902
Nvidia Employee Reportedly Detained in Taiwan Over AI Chip Smuggling | PCMag
https://www.pcmag.com/news/nvidia-employee-reportedly-detained-in-taiwan-over-ai-chip-smuggling
On May 21, 2025, the Keelung District Prosecutors Office in Taiwan announced the arrest of three people on suspicion of attempting to smuggle Supermicro AI servers equipped with NVIDIA GPUs into China. The three were alleged to have purchased the AI servers in Taiwan and planned to smuggle them into China, Hong Kong, and Macau.
Three men arrested by Taiwanese authorities for attempting to smuggle NVIDIA GPUs into China via Japan - GIGAZINE

The prosecution continued its investigation and announced on July 24, 2026, that it had arrested a person named 'Zhang XX.' The prosecution searched Zhang's home and business, and also requested him to appear for questioning. As a result, Zhang was found to have 'suspicion of committing a serious crime' and 'possibility of collusion with an accomplice,' leading to his arrest.

While prosecutors have not released Zhang's full name or company affiliation, Taiwanese media outlet Mirror Reports that Zhang was 'Zhang Tenglong, Senior Business Development Manager at NVIDIA.'
When technology media outlet PCMag contacted NVIDIA regarding Zhang's arrest, they received the following response: 'Smuggling GPUs is an unacceptable act. We sell our products to partner companies, including OEMs, and our partner companies ensure that all transactions comply with U.S. export control regulations. Even small exporters are subject to thorough scrutiny, and we will not provide any services or uploads for products sold illegally.'
While the U.S. government has authorized the export of NVIDIA's high-performance GPU 'H200' to China, the Chinese government has not authorized its import, and the situation remains awaiting approval from the Chinese government.
The US government has approved the sale of NVIDIA's AI chip 'H200' to a Chinese company, and is now awaiting approval from the Chinese government - GIGAZINE

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