Super Micro co-founder engaged in backdoor scheme to divert Nvidia chips to China, U.S. government says

by Marcus Liu - Business Editor
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US Charges Super Micro Executives in Conspiracy to Illegally Export AI Technology to China

Shares of Super Micro Computer fell on Thursday following the unsealing of an indictment charging three individuals with conspiring to unlawfully divert high-performance computer servers and advanced U.S. Artificial intelligence technology to China, in violation of U.S. Export control laws. While Super Micro Computer was not directly named in the federal indictment, the charges implicate key company personnel.

Key Individuals Charged

The U.S. Department of Justice has charged Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun in connection with the alleged scheme. Liaw, a U.S. Citizen and co-founder of Super Micro Computer, serves as a member of the company’s board of directors and controls approximately $464 million worth of Super Micro shares 1. Sun, a citizen of Taiwan, was arrested alongside Liaw. Chang, also a citizen of Taiwan, remains a fugitive 2.

Details of the Alleged Conspiracy

Prosecutors allege that the three individuals conspired to sell billions of dollars’ worth of servers integrating sensitive, controlled graphic processing units (GPUs) to buyers in China 2. The scheme reportedly involved the utilize of false documents, staged dummy servers to mislead inspectors, and complex transshipment routes to conceal the true destination of the technology – China 2. A company based in Southeast Asia was allegedly used to create the appearance of legitimate commercial activity 3.

Scale of the Alleged Diversion

The indictment details significant quantities of servers being diverted to China. Between late April 2025 and mid-May 2025 alone, at least $510 million worth of Supermicro’s servers assembled in the United States were allegedly diverted 3. Liaw’s company, Supermicro, is alleged to have shipped nearly $2.5 billion in servers with U.S. Artificial intelligence technology to China 3.

Government Response

“The indictment unsealed today details alleged efforts to evade U.S. Export laws… in order to obfuscate the true destination of restricted AI technology—China,” stated John A. Eisenberg, Assistant Attorney General for National Security 2. The FBI emphasized the importance of controlling the export of sensitive U.S. Artificial intelligence technology to safeguard national security 2.

Super Micro’s Response and Stock Impact

Super Micro Computer has acknowledged that Liaw was a co-founder and executive, another defendant was a manager, and the third was a contractor 1. Following the release of the indictment, shares of Super Micro fell approximately 12% in extended trading 1.

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