Nvidia employee Chang was detained by Taiwan's Keelung District Prosecutors' Office on Tuesday, suspected of falsifying business documents in connection with an AI chip smuggling investigation opened in May. The probe concerns alleged diversion of AI chips, and Taiwan does not treat unauthorized export of AI chips as a crime; previous arrests related to false shipping declarations. Prosecutors searched Chang's home and his workplace at Nvidia's Taipei office on July 24, marking the first known legal action against an Nvidia employee in a chip diversion case. Officials said they consider Chang strongly suspected and cited risks of flight, destruction of evidence, and collusion with witnesses. An Nvidia spokesperson said smuggling is a nonstarter, noting the company sells to known partners and complies with U.S. export control rules, and that any diverted products would have no service, support, or updates. Taiwan requires government approval for shipments to entities on the International Trade Administration's strategic high-tech commodities list, a designation that applies to 601 firms including Huawei and SMIC. The Ministry of Economic Affairs confirmed consultations with the United States on regulating advanced chips, though no timeline has been set. Senator Elizabeth Warren asked Nvidia's general counsel and audit committee chair for records supporting Jensen Huang's claim that there is no evidence of AI chip diversion, following the indictment of Super Micro co‑founder Yih‑Shyan Liaw over roughly $510 million in diverted servers. The inquiry remains ongoing, with prosecutors building a case under the Criminal Code and no public evidence that Nvidia itself has breached export regulations.