A widening investigation into the smuggling of high-end AI chips has triggered a significant downturn for Taiwanese technology company, Qingyun, with its stock experiencing a daily trading limit fall. Prosecutors in Keelung are investigating allegations of illicit activity surrounding the chips, used in advanced AI servers. Isfang, another company linked to the case, denies any involvement in illegal practices. The investigation centers on suspicions that the chips were illegally exported, potentially violating trade regulations. Authorities are currently gathering evidence and questioning individuals connected to both companies. The scandal has raised concerns about the security of sensitive technology and potential breaches in export controls within Taiwan’s semiconductor industry. Further details are expected as the investigation progresses, potentially impacting other firms in the sector.