NVDA ▼ -3.2% - NVIDIA Corporation $NVDA Nvidia approached Taiwanese political officials after prosecutors charged one of its managers in an alleged AI-chip smuggling operation, Bloomberg reports. Nvidia disputed the charges and defended the employee, drawing scrutiny over its handling of suspected chip diversion to China. * Smuggling Allegations: Prosecutors accuse manager Chang, one of nine defendants, of facilitating sales of 130 Super Micro ($SMCI) servers containing 1,040 Nvidia B300 chips. They allege 74 reached China via Indonesia and Japan; Taiwan's Coast Guard seized the remaining 56 in May. * Concealed Transactions: Chang allegedly secured Nvidia's approval for sales to a Taiwanese provider lacking sufficient installation space and funds, while concealing those deficiencies and payments originating from a Chinese entity. He faces forgery and breach-of-trust charges, with a maximum five-year sentence. * Nvidia's Intervention: Nvidia representatives objected to Chang's charges in discussions with Taiwanese political officials, who said they had no authority over the prosecution. Nvidia says its investigation found no indication he knew of alleged diversion by other companies. It also sought advice from TSMC ($TSM), which reportedly declined involvement. The case remains in court. * Separate U.S. Investigation: Nvidia general counsel Tim Teter contacted a Commerce official about Alice Huang's detention in Singapore during the Megaspeed probe. Bloomberg reports the call led Commerce's BIS to pause its investigation and refer the matter to the Justice Department by late 2025, an unusual move. Nvidia says Teter was unaware of Jensen Huang's affair with Alice. * Missing Chips: Nvidia initially couldn't locate roughly 50,000 chips sold to Megaspeed, later saying it found the missing hardware in separate warehouses without specifying quantities observed or installation timing. Singapore returned Alice Huang's passport in February after finding insufficient evidence to charge her. Bloomberg reports she is now in Beijing. 15-NOV-2026 11:12 AM ET