Taiwan Raids Tech Firms in China AI Chip Smuggling Probe

This handout photo from the Taiwan Coast Guard taken on May 20, 2026 and released on May 21 shows pallets of servers made by Super Micro Computer seized by Taiwanese authorities at an undisclosed location. (Photo by Handout / TAIWAN COAST GUARD / AFP)
This handout photo from the Taiwan Coast Guard taken on May 20, 2026 and released on May 21 shows pallets of servers made by Super Micro Computer seized by Taiwanese authorities at an undisclosed location. (Photo by Handout / TAIWAN COAST GUARD / AFP)
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Taiwan Raids Tech Firms in China AI Chip Smuggling Probe

This handout photo from the Taiwan Coast Guard taken on May 20, 2026 and released on May 21 shows pallets of servers made by Super Micro Computer seized by Taiwanese authorities at an undisclosed location. (Photo by Handout / TAIWAN COAST GUARD / AFP)
This handout photo from the Taiwan Coast Guard taken on May 20, 2026 and released on May 21 shows pallets of servers made by Super Micro Computer seized by Taiwanese authorities at an undisclosed location. (Photo by Handout / TAIWAN COAST GUARD / AFP)

Taiwanese investigators have raided the Taiwan offices of US company Super Micro Computer and two other tech firms, a prosecutor said Tuesday, as part of an expanded probe into the alleged smuggling of Nvidia AI chips to China.

Prosecutors said in May they were investigating the shipment of "high-end" AI servers containing advanced Nvidia chips to China, Macau and Hong Kong, in violation of US export controls.

Nine people are now under investigation, up from three previously, Huang Sheng, head prosecutor in the Keelung Prosecutors Office, told AFP.

They are accused of forging documents so they could ship roughly 50 servers made by Super Micro Computer to China.

Some of the servers were cleared by Taiwan customs and sent to China via Japan, an official previously told AFP on the condition of anonymity.

Twelve sites were raided on Monday as part of the probe, the prosecutors office said in a statement.

They included the homes of six people and offices of the companies they worked for -- Nasdaq-listed Super Micro Computer and Taiwan-listed firms Albatron Technology and Chief Telecom.

The United States restricts the export of its most cutting-edge AI chips to China, partly over concerns the technology could be used by Beijing's military.

But it is not a criminal offence in Taiwan -- a situation lawmakers and experts say needs to change -- with Taiwanese prosecutors relying on other laws to go after offenders.

Lawmaker Chung Chia-pin, who belongs to President Lai Ching-te's Democratic Progressive Party (DPP), plans to propose an amendment to the Foreign Trade Act to include a "mainland China semiconductor chip clause" that would make exporting chips there illegal.

Chung told AFP Tuesday that a loophole in the law was created under former president Ma Ying-jeou, who belongs to the Kuomintang party, and successive DPP-led governments have failed to close it.

Top-end chips made by US titan Nvidia -- the world's most valuable company -- are used to train and run AI systems.

In response to Washington's export restrictions, China has been accelerating efforts to develop its own AI chips and break away from reliance on US hardware.

This month, Taiwanese Deputy Economic Affairs Minister Ho Chin-tsang said Taiwan and the United States "will work to implement our shared export control goals", but the government has not provided details.

Chris McGuire, an expert on China and AI at the US-based Council on Foreign Relations, said chip smuggling was a "really significant problem" in Taiwan and Southeast Asia.

"It's really, really important that allies align with the United States on all of these policies and also legal authorities," McGuire, who worked at the National Security Council under former US president Joe Biden, told a forum in Taipei this month.

"It's not a criminal violation in Taiwan to export AI chips to China, obviously it is under US law, but it's not under Taiwanese law. That needs to change, right?"

Super Micro Computer, Albatron Technology and Chief Telecom have said separately they are cooperating with investigators. Their shares have seen sharp falls this week.

Prosecutors say it is too early to know if the case is linked to a Nvidia chip smuggling case involving Super Micro Computer employees in the United States.

A US indictment unsealed in March showed employees of the company allegedly raked in billions of dollars diverting Nvidia AI chips to China in breach of export controls.



Oracle Shares Rise as AI Cloud Backlog Beats Estimates

FILE PHOTO: A logo of cloud service provider Oracle is seen at the company's offices at Eastpoint Business Park, Dublin, Ireland October 18, 2021. REUTERS/Tom Bergin/File Photo
FILE PHOTO: A logo of cloud service provider Oracle is seen at the company's offices at Eastpoint Business Park, Dublin, Ireland October 18, 2021. REUTERS/Tom Bergin/File Photo
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Oracle Shares Rise as AI Cloud Backlog Beats Estimates

FILE PHOTO: A logo of cloud service provider Oracle is seen at the company's offices at Eastpoint Business Park, Dublin, Ireland October 18, 2021. REUTERS/Tom Bergin/File Photo
FILE PHOTO: A logo of cloud service provider Oracle is seen at the company's offices at Eastpoint Business Park, Dublin, Ireland October 18, 2021. REUTERS/Tom Bergin/File Photo

Oracle shares rose 5.5% premarket on Friday after the cloud computing and software company's stronger-than-expected quarterly results eased concerns around its massive debt-driven spending spree.

The Austin, Texas-based firm booked more than $30 billion of additional AI cloud contracts in the first fiscal quarter, boosting its revenue backlog to $664 billion, above analyst estimates of $639.89 billion, according to data from Visible Alpha.

Oracle's upbeat results follow a period of underperformance, as the company races ⁠to keep pace ⁠with hyperscale rivals, with mounting debt and squeezed cash flows raising doubts over when its massive AI spending will pay off.

The results should address key investor concerns including whether Oracle's backlog growth can be ⁠sustained, its conversion into revenue amid data center delays, and the need for further capital raises, Reuters quoted J.P. Morgan analysts as saying.

Its shares were down more than 21% so far this year, compared with a nearly 11% rise in the benchmark S&P 500 index.

"Oracle's problem has not been finding customers, but proving that its enormous data center build-out can eventually generate ⁠enough ⁠cash to justify the cost. The results should nevertheless ease fears that Oracle is building ahead of demand," said Lale Akoner, etoro market strategist.

Oracle is set to add about $24 billion in market value at the current share price of $161.3, if gains hold.

The stock trades at 16.86 times its forward earnings estimates, compared with Microsoft's 23.84 multiple and Amazon's 22.58, according to data compiled by LSEG.


More US Lawmakers Call for New AI Rules After Anthropic Researchers Warn of Human Extinction

The Anthropic logo, a keyboard, and a robotic hand in this illustration taken June 5, 2026. (Reuters)
The Anthropic logo, a keyboard, and a robotic hand in this illustration taken June 5, 2026. (Reuters)
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More US Lawmakers Call for New AI Rules After Anthropic Researchers Warn of Human Extinction

The Anthropic logo, a keyboard, and a robotic hand in this illustration taken June 5, 2026. (Reuters)
The Anthropic logo, a keyboard, and a robotic hand in this illustration taken June 5, 2026. (Reuters)

Growing numbers of US lawmakers are calling for new rules to govern AI systems after dire warnings from two Anthropic researchers that rapidly progressing artificial intelligence could lead to the extinction of the human race in the not-too-distant future.

Alarm about the potential harm from AI grew this week when Anthropic researcher Jacob Coxon said he had resigned, and that the "people building AI earnestly believe that it could kill us all by the end of the decade."

Anthropic scientist Evan Hubinger chimed in, saying Coxon was correct.

"We really do earnestly believe AI could kill all humans," Hubinger wrote on X. "I personally think it is >10% within the next decade."

The warnings follow cases of AI agents going rogue to hack external systems and AI safety researchers quitting their companies concerned about the technology's risks. Politicians, both Democrats and Republicans, have responded with alarm and calls for more action.

"Washington needs to wake up and take ‌this seriously," Arizona Senator ‌Mark Kelly, a Democrat, said on X, referring to the risks of AI technology.

Texas Senator ‌Ted ⁠Cruz, on the ⁠TV program "The View", pointed to legislation to regulate AI's "catastrophic risks". Cruz oversees a Senate committee with oversight of the US Commerce Department, the agency with in-house AI safety researchers.

Representative Anna Paulina Luna, a Republican from Florida, in a separate X post called on House Speaker Mike Johnson to convene a “special session on AI.” The House is out this week on recess, with plans to return next week.

A spokesperson for Anthropic, which is preparing to go public at what some investors have said could be a potential $2 trillion valuation, said on Thursday that the company would continue to aggressively test "models or dangerous capabilities in areas like cybersecurity and biology."

The company is interested in working with the AI industry on the ⁠pace of releasing new AI tools, the spokesperson added.

OTHER AI RESEARCHERS HAVE QUIT

OpenAI Chief ‌Executive Sam Altman told employees at a company meeting this week that the ‌firm was open to slowing development of its AI systems, Bloomberg News reported.

The Anthropic rival, which is also gearing up for an IPO, did ‌not comment on Altman's meeting with staff. The company has previously said it was slowing parts of model development.

Earlier this ‌week, OpenAI said it was pushing for mandatory national AI safety requirements in the United States.

Two specialists in AI safety have also come forward with their concerns about the rapid development of the industry.

Josh Engels, who used to work on AI safety research at Google DeepMind, said in an interview with NBC published Thursday: "There are no adults in the room. People are trying their best, but there is no one coming to save ‌us".

Joe Benton, who used to lead a safety research team at Anthropic, told NBC he is worried that AI might end up progressing "too fast for us to get our act ⁠together in time unless we worry ⁠about it now".

Both have joined METR, a research nonprofit that measures whether and when AI systems might threaten harm to society.

INDEPENDENT AUDITORS

Alarm about AI has put pressure on Senate Majority Leader John Thune and Democrat Amy Klobuchar, who are writing a bill to regulate AI products.

Klobuchar said the legislation should require companies developing AI tools to "work with government experts to verify and test models to make sure AI is safe."

Thune told Reuters in July that the bill would address "catastrophic risks" posed by AI systems.

California on Wednesday enacted the first state law setting rules for how independent auditors evaluate AI products. OpenAI executive Chris Lehane said OpenAI would support the bill, around the same time California Governor Gavin Newsom's office released a statement saying he'd signed it into law.

A bipartisan group of six US House lawmakers in July proposed legislation that would require developers of the most powerful AI models to submit them for independent security audits. The auditors would be accredited by the US Department of Commerce, and the department would create a new position to oversee AI security, according to the bill.

"It is important to have space for oversight of these systems, including appropriately calibrated pre-deployment review and independent third-party audits," said Alicia Solow-Niederman, a tech law professor at George Washington University.


Apple Joins Foldable Phone Race with $1,999 Passport-shaped iPhone Duo

New Apple CEO John Ternus, alongside vice president of industrial Molly Anderson, shows off an iPhone Duo during an Apple event at the Steve Jobs Theater in Apple Park in Cupertino, California, on September 9, 2026. (Photo by Karl Mondon / AFP)
New Apple CEO John Ternus, alongside vice president of industrial Molly Anderson, shows off an iPhone Duo during an Apple event at the Steve Jobs Theater in Apple Park in Cupertino, California, on September 9, 2026. (Photo by Karl Mondon / AFP)
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Apple Joins Foldable Phone Race with $1,999 Passport-shaped iPhone Duo

New Apple CEO John Ternus, alongside vice president of industrial Molly Anderson, shows off an iPhone Duo during an Apple event at the Steve Jobs Theater in Apple Park in Cupertino, California, on September 9, 2026. (Photo by Karl Mondon / AFP)
New Apple CEO John Ternus, alongside vice president of industrial Molly Anderson, shows off an iPhone Duo during an Apple event at the Steve Jobs Theater in Apple Park in Cupertino, California, on September 9, 2026. (Photo by Karl Mondon / AFP)

Apple on Wednesday redefined its flagship smartphone with the launch of the Duo, a folding $1,999 iPhone, betting its design and promises of data privacy will let it leap ahead of rivals who have been selling folding phones for years.

The Duo could shake up a category long dominated by Samsung and Chinese companies like Huawei, whose devices have struggled to move beyond a niche audience. Analysts have long said Apple's entry could be the catalyst foldables need, helping bring the form factor into the mainstream much as the company did with smartwatches and wireless earbuds.

The Duo is sized and shaped like a passport, with rounded edges. It opens into a horizontal, 7.6-inch-diagonal (19 cm) screen that also can be viewed vertically. There is a smaller single screen on the front, when the phone is folded. When open, it is Apple's thinnest phone, the company said. However, it is thicker than folding phones offered by Chinese rivals.

New CEO John Ternus led the event, for the most notable overhaul of Apple's flagship product since the iPhone X in 2017. The iPhone brought in $209.6 billion, or just over half of Apple's sales, in its most recent fiscal year.

Ternus criticized existing foldables as awkward and poorly suited for common tasks such as scrolling and video viewing, saying the Duo was designed to deliver an iPad-like experience in a pocket-sized device through a custom hinge, dual displays with a consistent aspect ratio, and a new titanium body.

"It's entirely new and at the same time remarkably familiar. A similar size to your passport, it feels familiar to hold ⁠and comfortable to use ⁠with one hand," Reuters quoted Ternus as saying.

Other tech companies made light of the launch. Duolingo, the foreign-language learning app with a green owl mascot named Duo, messaged on X, "We infringed upon," with laughing-crying emojis. That drew a message of "solidarity" from foldable phone company Samsung Mobile US, which added, "They copied us, too."

It will fall to Ternus, the previously low-profile hardware chief, to persuade Apple's customers that they need a foldable device costing about $2,000, a new high for a global brand that has defined mass luxury. Analyst firms such as International Data Corporation expect Apple will sell every foldable iPhone it can produce and secure a 40% share of the lucrative niche by the end of next year.

Apple positioned the iPhone Duo as a business productivity device, showing how it would manage Zoom calls with multiple participants and a broader view of the Slack messaging app.

The Duo's larger screen will support multiple app windows at once, a move aimed at productivity that Apple has made with some of its iPads.

Apple said the iPhone Duo, ⁠available from October 23, will feature the A20 Pro chip to drive its displays and also a new C2 modem chip designed by Apple, part of its move away from Qualcomm's wireless data chips. Its battery supports 24 hours of mixed dual-screen use and can charge to 50% in about 20 minutes.

"Apple showed up years after everyone else, yet it walks in and sets the rules. Apple entered the foldable market and, in one keynote, set the price and the standard every rival will now be measured against," said Francisco Jeronimo, vice president for Data and Analytics, Devices, at IDC EMEA.

"The real fight is China, where Huawei owns nearly 80% of foldables. Apple has just given Chinese buyers a reason to look up. Huawei owns China's foldable market today. Apple has just handed Chinese buyers their first genuinely compelling reason to reconsider."

Samsung has launched a publicity campaign for its foldable phones, as it seeks to defend its leadership in the segment, which it pioneered in 2019.

“Apple’s entry is a serious threat to Samsung, particularly in North America," said Paolo Pescatore, founder of research firm PP Foresight, adding Samsung for the first time faced a competitor capable of taking the category mainstream.

Apple shares closed down 0.3% at $315.34 on Wednesday, following the presentation.

Former CEO Tim Cook handed off to Ternus at the start of the presentation with a video of a joking debate about how to begin the event. The video closed with a closeup of Cook, who said, "Not me. That's your guy," pointing back toward the new ⁠CEO.

Ternus described the iPhone platform as a ⁠personal AI hub that focused on privacy, saying that others wanted to collect and store personal data.

"Honestly, trust only goes so far when your data is no longer yours to control," he said. "That's why Apple Intelligence runs on device whenever it can."

Apple's Lilian Rincon, who oversees AI products for the iPhone maker and was recruited from Google earlier this year, described an updated Siri assistant.

Executives also showed off the iPhone 18 Pro and the 18 Pro Max handsets that are the latest versions of Apple's well-known line, which do not fold.

Pricing for the iPhone 18 Pro and Pro Max starts at $1,199 and $1,299, up $100 from the starting prices of the iPhone 17 Pro and Pro Max.

Apple also unveiled a feature aimed at addressing growing concerns over AI-generated and manipulated images. It introduced a new standard it calls "Apple Reference Image" to prove the authenticity of the images taken with the new iPhone 18 Pro cameras and said it will also support the emerging SynthID standard for identifying images that have been created or edited with AI. The Apple Reference Image feature will not be available in the EU or China.

The iPhone 18 Pro also will include the new A20 Pro chip, which brings improvements to help advanced AI models run directly on iPhones.

The company also said a new version of AirPods would start at $129 with noise cancellation, a first for its budget line of earbuds. Apple also unveiled the Apple Watch Series 12 and Apple Watch Ultra 4, positioned as major health-focused upgrades with new features that gauge recovery and fitness, as well as improved heart-rate tracking.

Micron CEO Sanjay Mehrotra attended the launch, notable because Apple rarely gives suppliers a prominent role at such events. As Apple adds more AI features to iPhones and other products, demand for high-performance memory has increased, elevating the strategic role of suppliers such as Micron, especially amid a global shortage of memory chips.