Super Micro Computer Inc. (SMCI) announced on Thursday that its collaboration with Taiwanese authorities led to the arrest of three suspects in a case involving the smuggling of AI servers into China. Super Micro stated that the collaboration also helped prevent the smuggling of 50 of the company's servers into China, and that these servers were deceptively acquired after being sold to an authorized reseller. The company said it had followed a rigorous vetting and review process that exceeded applicable regulatory requirements. Super Micro’s update comes days after Nvidia CEO Jensen Huang urged the company to tighten up its compliance processes. “Ultimately Super Micro has to run their own company. I hope that they will enhance and improve their regulation compliance and avoid that from happening in the future,” he told reporters in Taipei. Super Micro shares were up more than 11% in Thursday morning’s trade.