US-China chip smuggling tensions reach Taiwan; Nvidia offices searched, employee detained

Taiwanese prosecutors have detained an Nvidia employee and searched the company's offices as part of an expanding investigation into the alleged smuggling of AI chips to China, reported Bloomberg citing people familiar with the matter. The case is linked to an ongoing probe into suspected exports of Nvidia's AI accelerators in violation of US trade restrictions. As per the report, the latest action is believed to be the first known case of Taiwanese authorities taking legal action against an Nvidia employee as they widen their investigation into the suspected illegal movement of advanced AI hardware.Nvidia employee detained after home and office searchesAccording to the report, Taiwanese investigators also searched the employee's home and his desk at Nvidia's Taipei office on July 24. The officials later asked a court for permission to detain the employee on allegations of forgery and breach of trust.