Nvidia (NVDA) Chief Executive Officer Jensen Huang has publicly called on Super Micro Computer (SMCI) to strengthen its compliance efforts after Taiwanese authorities detained three people accused of making fraudulent declarations tied to AI servers containing Nvidia chips.

According to a Bloomberg report, Huang told reporters in Taipei last weekend that Nvidia is “rigorous” in explaining regulations to all of its partners and said he hopes Super Micro “will enhance and improve” compliance procedures.

“Ultimately Super Micro has to run their own company,” Huang said. “I hope that they will enhance and improve their regulation compliance and avoid that from happening in the future.”

Nvidia stock is up 14% year-to-date.Getty Images

The comments came as the U.S. government continues tightening restrictions on advanced artificial intelligence technology exports to China, particularly high-end AI chips used to train and run large language models such as OpenAI’s ChatGPT.

Super Micro assembles servers using Nvidia’s advanced processors and sells systems used in AI data centers. Bloomberg reported that Super Micro said it is committed to working with industry partners to protect advanced U.S. technologies and intellectual property.

U.S. crackdown on AI chip exports intensifies

Scrutiny over advanced AI hardware shipments to China is growing as Washington imposes strict export controls.

In March, the U.S. Justice Department charged three individuals connected to Super Micro Computer, including one co-founder, for allegedly helping smuggle at least $2.5 billion worth of U.S. AI technology into China, Reuters reported.

Related: Cathie Wood buys $32 million of popular semiconductor stock

Bloomberg also reported earlier this month that a company involved in Thailand’s national AI initiative was suspected of helping move Super Micro servers containing Nvidia chips into China. Chinese tech firm Alibaba Group Holding (BABA) was reportedly among several end customers connected to the servers.

Nvidia has repeatedly said it complies with U.S. export regulations and works closely with partners to ensure adherence to trade rules. Still, the company faces mounting pressure as authorities increasingly scrutinize supply chains tied to AI infrastructure.

Nvidia remains the dominant supplier of AI chips used by hyperscalers and enterprise customers building large-scale AI platforms, while Super Micro has emerged as one of the biggest beneficiaries of the AI infrastructure boom.

Super Micro shares have surged 27% year-to-date alongside broader investor enthusiasm for AI-related hardware. Nvidia stock is up 14% year-to-date.