U.S. federal prosecutors charged Super Micro Computer (SMCI) co-founder Yih-Shyan “Wally” Liaw and two others with conspiring to smuggle high-performance Nvidia GPU servers to China. The indictment alleges the group bypassed U.S. export controls using a Southeast Asian intermediary and fraudulent documentation. This scheme diverted at least $2.5 billion in AI technology to China since 2024.
Super Micro is not a defendant in the case and is currently cooperating with federal authorities. The company placed the indicted employees on administrative leave following the unsealing of the indictment on Thursday.
Super Micro shares plummeted more than 28% during trading on March 20. The event highlights significant compliance and governance risks as the U.S. intensifies efforts to restrict China's access to advanced technology.