Justice Department charges three in Super Micro Computer export scheme
The U.S. Justice Department charged three people associated with server maker Super Micro Computer with conspiring to illegally export artificial intelligence technology to China. The defendants allegedly diverted billions of dollars worth of servers containing controlled graphics processing units in violation of U.S. export control laws.
Yih-Shyan Liaw, Super Micro's co-founder and board member, was arrested Thursday along with Ting-Wei Sun, a contractor. Ruei-Tsang Chang, a sales manager at Super Micro's Taiwan office, remains a fugitive.
The scheme involved systematically diverting the company's high-performance AI servers-many equipped with Nvidia chips subject to export restrictions-to Chinese buyers without Commerce Department licenses. The defendants allegedly fabricated documents, staged fake equipment to pass audits, and used shell companies to hide the true customer lists and misconduct.
Company response and market impact
Super Micro said it was not named as a defendant and is cooperating with federal prosecutors. The company placed Liaw and Chang on leave and terminated its relationship with Sun.
Super Micro's stock fell 8% following the announcement. The San Jose-based manufacturer designs and builds servers for artificial intelligence and cloud computing applications.
The company said the alleged conduct violated its compliance policies and export control procedures. "The conduct by these individuals alleged in the indictment is a contravention of the company's policies and compliance controls, including efforts to circumvent applicable export control laws and regulations," Super Micro said in a statement.
Details of the charges
Liaw is a U.S. citizen who co-founded Super Micro in 1993 and joined its board in 2023. Sun holds Taiwanese citizenship. Chang also is a Taiwanese citizen.
The indictment was unsealed Thursday in Manhattan federal court. The Justice Department did not specify the total value of diverted technology or the number of servers involved beyond describing it as "billions of dollars worth."
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