US EditionDOJ Charges 3 in $2.5B Scheme to Smuggle AI Servers to China
Three charged with conspiring to divert $2.5 billion of U.S.-made AI servers to China bypassing export controls, with $510 million shipped in a six-week span in 2025, DOJ says.
- Yih-Shyan Liaw, a co-founder of Super Micro Computer, resigned from the board following his indictment on charges of smuggling Nvidia artificial intelligence chips to China.
- Prosecutors allege Liaw, Ruei-Tsang Chang, and Ting-Wei Sun diverted $2.5 billion worth of servers to China using pass-through entities in Southeast Asia and 'dummy' hardware to bypass export controls.
- Authorities arrested Liaw in California on Thursday and released him on bail; Sun remains in custody awaiting a hearing while Chang remains at large.
- Super Micro shares plummeted 33% following the indictment, and the company appointed DeAnna Luna, an executive from Intel, as acting chief compliance officer.
- Jay Clayton, Attorney for the Southern District of New York, warned that diversion schemes pose a 'direct threat to national security,' requiring swift action on sensitive technology crimes.
134 Articles
134 Articles
Super Micro co-founder Yih-Shyan Liaw resigns from its board
March 20 : Super Micro Computer said on Friday that Yih-Shyan Liaw has resigned from its board, effective immediately.The U.S. Justice Department on Thursday charged Super Micro co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun with running a scheme to route U.S.-made serv
Three people have been charged with illegally exporting NVIDIA GPUs to China
The US Attorney's Office for the Southern District of New York has charged three people with illegally exporting NVIDIA GPUs to China in violation of the Export Control Reform Act. NVIDIA's chips have become a critical component in the rush to train and run increasingly complex artificial intelligence models, one the US has sought to manipulate with export controls and profit-sharing schemes with NVIDIA.The three people, Yih-Shyan "Wally" Liaw, …
Why Super Miro Computer Stock Is Plummeting Today
Key PointsThe U.S. Justice Department has brought charges against three individuals connected to Super Micro Computer. The Justice Department alleges that these individuals helped sell $2.5 billion worth of AI hardware to China that was banned from export to the country. 10 stocks we like better than Super Micro Computer › Super Micro Computer (NASDAQ: SMCI) stock is getting pummeled in Friday's trading following news that seriously threatens th…
Super Micro co-founder arrested in $2.5B Nvidia AI chip smuggling case tied to China - Tech Startups
Federal prosecutors have charged a co-founder of Super Micro Computer in a case that cuts to the heart of the global AI arms race. The U.S. Department of Justice on Thursday unsealed an indictment accusing Yih-Shyan “Wally” Liaw and two […] The post Super Micro co-founder arrested in $2.5B Nvidia AI chip smuggling case tied to China first appeared on Tech Startups.
Market Shocker: Super Micro Co-Founder Charged with Sending Nvidia AI Chips to China, Shares Plummet 27%
Federal prosecutors have charged three individuals connected to server manufacturer Super Micro Computer, including the tech giant's co-founder, with illegally diverting billions of dollars worth of Nvidia-powered AI servers to China in violation of U.S. export controls.
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