A Super Micro Computer founder diverted $2.5 billion worth of Nvidia chips to China, feds say

Federal authorities have charged a co-founder of Super Micro Computer and two other people for allegedly sending $2.5 billion in hardware equipped with Nvidia $NVDA +1.99% artificial intelligence technology to China. Jay Clayton, the U.S. Attorney for the Southern District of New York, announced the indictment Thursday, saying the group violated export control laws.

The Department of Justice charged Yih-Shyan “Wally” Liaw, 71; Ruei-Tsang “Steven” Chang, 53; and Ting-Wei “Willy” Sun, 44. Liaw, who helped start Super Micro and held a seat on its board, was taken into custody in California before being granted bail. Sun, a broker, is in custody. Chang, a general manager in the Taiwan office of Super Micro, remains a fugitive, authorities said.

Related Content

Nvidia is bringing its H200 chips back to China

Schools are putting AI in classrooms before they know what it does

According to CNN, the group utilized an intermediary firm located in Southeast Asia during 2024 and 2025 to procure servers produced in the U.S. The indictment says these servers contained graphics processing units that require a license for export to China. The hardware was transported in plain packaging via a shipping firm to obscure what was inside the shipments as they headed to Chinese destinations.

“The defendants participated in a systematic scheme to divert massive quantities of U.S. artificial intelligence technology to customers in China,” Clayton said.  “They did so through a tangled web of lies, obfuscation, and concealment — all to drive sales and generate revenues in violation of U.S. law.  Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to U.S. national security.  Crimes involving sensitive technology must be met with swift action otherwise the law is meaningless.

Prosecutors say the scheme resulted in the diversion of $510 million in hardware between April 2025 and May 2025. To bypass compliance measures, the defendants and executives at the pass-through firm prepared documents identifying the Southeast Asian company as the customer.

To manipulate audit results, the defendants allegedly set up thousands of non-operational imitation servers. The government says that Sun and an associate applied heat with hair dryers to transfer identification tags and serial numbers from legitimate packaging to the decoy units. Surveillance footage captured the group preparing these items to pass inspections by Super Micro and the Department of Commerce.

Super Micro, which does not face charges in the case, issued a statement noting it had suspended Liaw and Chang from their duties. The manufacturer cut ties with Sun and said the actions described in the charges represent a violation of its internal rules. The manufacturer is cooperating with the investigation.

Super Micro Computer stock plummeted almost 25% in pre-market trading.

The three men are charged with planning to circumvent the Export Controls Reform Act, along with counts for conspiring to defraud the government and transport goods illegally. Neither the men charged nor lawyers representing them have yet to comment publicly.

The export control charge carries a maximum sentence of 20 years in prison.

📬 Sign up for the Daily Brief

Our free, fast and fun briefing on the global economy, delivered every weekday morning.

Sign me up

10 Stocks in the Defense Spending BoomSeeking Alpha |

SponsoredSponsored

Explore

Undo

The Crude Oil Rally Is Reshaping Defensive Stock StrategiesSeeking Alpha |

SponsoredSponsored

Read More

Undo

Not a typical dating platformGoldenAgeSouls |

SponsoredSponsored

Read More

Undo

Stop Waiting Start DatingFunchatt |

SponsoredSponsored

Click Here

Undo

今の暮らしにぴったりの備えを全国労働者共済生活協同組合連合会 |

SponsoredSponsored

Undo

50代母「美姿勢は簡単」履くだけで姿勢がピン！amepla |

SponsoredSponsored

詳細

Undo

【ズボラ専用】「ジムやめた。」履いて歩くだけ、買い物しながら0円トレーニングamepla |

SponsoredSponsored

詳細

Undo

不動産価格が上昇中LIFULL HOME’S |

SponsoredSponsored

詳細

Undo

ご自宅の適正価格を知ろうLIFULL HOME’S |

SponsoredSponsored

詳細

Undo

バイヤーおすすめカメラ特集Amazon.co.jp |

SponsoredSponsored

Undo

Use an AI Writing Tool That Actually Understands Your VoiceGrammarly |

SponsoredSponsored

Install Now

Undo

Need a mouse that has unmatched performance?TM Enterprises |

SponsoredSponsored

Shop Now

Undo

Discover the AI writing partner that understands your audience.Grammarly |

SponsoredSponsored

Install Now

Undo

10 travel destinations that give you the most for your moneyQuartz

Undo

Elizabeth Holmes’ prison sentence keeps getting shorterQuartz

Undo

バイヤーおすすめポータブル電源Amazon.co.jp |

SponsoredSponsored

Undo

Start trading like a professional today!Interactive Brokers |

SponsoredSponsored

Learn More

Undo

日本でも、世界でも機能する家具。&Premium × BoConcept |

SponsoredSponsored

詳細

Undo

第二世代抗ヒスタミン成分配合。1日1回1錠で24時間効果を発揮！コンタック |

SponsoredSponsored

Undo

「正確な情報に辿り着くのに苦労」。子育て世代が求めるサポートは？リアルな声から考えたハフポスト日本版 |

SponsoredSponsored

Undo

MOST POPULAR

The awful truth of donating a dead body to “science”Quartz

Undo

MOST POPULAR

The woman who sued Donald Trump alleging child rape has called off her press conferenceQuartz

Undo

Play War Thunder now for freeWar Thunder |

SponsoredSponsored

Play Now

Undo

花粉症対策に、点鼻薬とは？アレルギー症状の元に直接効く！フルナーゼ Byコンタック |

SponsoredSponsored

Undo

プロ監修！ゆうパック収納術JP CAST |

SponsoredSponsored

詳細

Undo