Taiwanese graphics-card maker Chaintech is dumping its stake in a Chinese AI server company that Washington blacklisted, a defensive move that cuts risk but shrinks the group.

• Chaintech's board approved selling its 51% indirect stake in Tianjin SuiTeng Hezhi Technology and related units for about NT$790 million.
• The US Commerce Department put SuiTeng on its entity list in 2024, making the business a legal and operational liability for the Taiwanese parent.
• Chaintech decided to exit within a month of the blacklisting, but only now has a deal.
• The buyers are four new companies set up by SuiTeng's own boss and key staff, making this a related-party deal.
• Outside buyers were scarce because the company is unlisted and blacklisted, and most wanted profit guarantees Chaintech refused to give.

Outlook: The sale still needs shareholder approval at an October 8 special meeting, with the first payment due within 30 days of signing.