Nvidia executives called on company partners to strengthen oversight of their operations on Saturday, following the arrest of three individuals by Taiwanese authorities for allegedly sending embargoed computer chips to China using forged documents. Nvidia's founder and CEO, Jensen Huang, met with reporters in Taipei after arriving from the United States. When asked about the arrests, he stated that the company expects its partners to comply with the law. “We insist on compliance from our partners,” Huang told reporters at Songshan Airport. “We hope they can enhance and improve compliance oversight to prevent such incidents from happening again.”
The three individuals detained by Taiwanese authorities are accused of providing false information in shipping documents for computer servers produced by Super Micro Computer. Regulations implemented by the U.S. in 2022 prohibit companies from selling such hardware to China, Hong Kong, and Macau without special permission. Super Micro's servers contain Nvidia chips, which are integrated into larger systems for training and running AI software in data centers. Super Micro is under scrutiny in both the U.S. and Taiwan, with regulators seeking clearer information on the company's cross-border shipping operations and internal checks.
Taiwanese authorities have detained three more individuals suspected of document forgery, although their names have not been disclosed. Despite the challenges, Super Micro's stock has rebounded nearly 22% over the past month, currently trading at around $35.58. This increase is linked to the general excitement in the semiconductor industry and optimistic expectations surrounding Nvidia's earnings report.
After expressing concerns about key partners, Huang discussed Nvidia's future. He revealed that a new product named Vera Rubin is expected to launch in the third quarter of this year, and he is optimistic about it. “Vera Rubin will be the most successful generation of products to date,” Huang stated. He noted that Nvidia previously collaborated with only one or two major AI companies, but now works with all major players. The company anticipates this will be its largest and fastest product launch. The new technology is designed to support AI systems capable of working independently and handling complex tasks.
Huang also touched on an important topic. During Wednesday's earnings call, he mentioned that Nvidia's new central processing unit could enter a $200 billion market. When a reporter asked on Saturday if this figure includes China, his response was straightforward. “I think so,” Huang said. This comment indicates that Nvidia is treading a delicate line. U.S. officials have approved the company to sell its H200 chips to China, but Chinese authorities have yet to sign off, as they seem to be pushing for domestic chip manufacturers. Washington has approved about ten Chinese companies to purchase the H200, which is Nvidia's second most powerful AI chip, but no chips have been delivered to date.
