Super Micro Computer Executives Charged with Smuggling Nvidia Chips to China

U.S. Prosecutors have charged three individuals with ties to Super Micro Computer Inc. With illegally diverting billions of dollars worth of Nvidia AI chips to China, violating U.S. Export control laws. The alleged scheme involved fabricating documents and using a pass-through company to conceal the ultimate destination of the high-performance servers.

Details of the Allegations

Yih-Shyan “Wally” Liaw, a co-founder and board member of Super Micro Computer, Ruei-Tsan “Steven” Chang, a manager at the company, and Ting-Wei “Willy” Sun, a contractor, are accused of conspiring to violate the Export Control Reform Act and smuggling goods from the U.S. Between 2024 and 2025 . The indictment alleges they worked together to divert servers containing Nvidia chips, which are subject to strict U.S. Export controls prohibiting sales to China without a license, to protect U.S. National security and foreign policy interests .

The total value of the diverted servers is estimated at $2.5 billion . Prosecutors claim the defendants used fabricated documents, staged bogus equipment inventories, and a pass-through company to mask their activities and the identity of their Chinese clients .

Super Micro’s Response

Super Micro Computer has stated that it has placed Liaw and Chang on administrative leave and terminated its relationship with Sun. The company emphasized that the alleged conduct contradicts its policies and compliance controls, and that it is fully cooperating with the investigation . Super Micro maintains a robust compliance program and is committed to adhering to U.S. Export control laws .

Broader Implications

This case highlights the U.S. Government’s efforts to prevent the unauthorized transfer of advanced technology, particularly AI chips, to China. The U.S. Has imposed restrictions on the sale of Nvidia’s AI chips to China due to concerns about competition in the artificial intelligence sector, with companies like DeepSeek challenging U.S. Rivals such as Anthropic and OpenAI . U.S. Attorney Jay Clayton stated that such diversion schemes “pose a direct threat to U.S. National security” .

Following the unsealing of the indictment, shares of Super Micro fell approximately 12% in extended trading .