Three individuals linked to Super Micro Computer, including its co-founder, face charges in the United States for allegedly helping to smuggle AI technology worth at least $2.5 billion to China, violating US export rules, according to the Department of Justice.
The complaint referred to a “US manufacturer” rather than naming Super Micro. The California-based company confirmed that federal prosecutors informed it of the indictment on Thursday. Super Micro stressed that it is not a defendant and has fully cooperated with investigators.
Alleged scheme involved multiple countries
The Justice Department identified the three charged individuals as Yih-Shyan Liaw, Ruei-Tsang Chang, and Ting-Wei Sun. The indictment, unsealed in federal court in Manhattan, alleges that the trio routed US-made servers through Taiwan and other Southeast Asian countries, repackaged them in unmarked boxes, and sent them on to China.
The US has restricted exports of advanced AI chips to China since 2022.
FBI Assistant Director James Barnacle said the defendants created falsified documents, staged equipment to pass audits, and used a pass-through company to hide their activities and clients. US Attorney Jay Clayton added that such schemes “pose a direct threat to US national security.”
Liaw co-founded Super Micro in 1993 and joined its board in 2023. Chang worked as a sales manager in the Taiwan office, while Sun was a contractor. Authorities allege the trio removed labels and serial numbers from genuine servers and placed them on dummy machines before sending the originals to China.
Arrests and company response
Liaw, 71, a US citizen, was arrested in California on Thursday alongside Sun, 44, a Taiwanese contractor. Chang remains at large, according to The Associated Press. Liaw was released on bail, while Sun is scheduled for a bail hearing on Friday.
After the charges became public, Super Micro placed Liaw and Chang on leave and ended its relationship with Sun. The company’s shares fell 8 per cent in after-hours trading.
Officials have not revealed the specific chips involved. Nvidia, a leading supplier of AI chips to Super Micro and other server manufacturers, dominates the market and sells high-value products. Nvidia emphasised that compliance with export laws remains a top priority.
The company said: “We work closely with our customers and the government on compliance programmes as export regulations expand. Nvidia does not support unlawful diversion of controlled US computers to China, and enforcement measures are robust and effective.”
