Three individuals linked to artificial intelligence server maker Super Micro Computer Inc, including its co-founder, have been charged with helping to smuggle at least $2.5 billion worth of U.S. AI technology to China in violation of export laws, the U.S. Justice Department said on Thursday.
U.S. prosecutors did not name Super Micro in the complaint, referring only to a “U.S. manufacturer”. The San Jose, California-based company said it had been informed of the indictment and stressed that it was not named as a defendant. It also said it had cooperated with investigators.
Complex Route Through Asia
The Justice Department said Yih-Shyan Liaw, Ruei-Tsang Chang and Ting-Wei Sun were charged in an indictment unsealed in federal court in Manhattan.
Prosecutors allege the group used a complex route to move U.S.-made servers through Taiwan and other Southeast Asian countries before sending them on to China. The U.S. has restricted exports of advanced AI chips to China since 2022.
Liaw co-founded Super Micro in 1993 and joined its board in 2023. Chang worked as a sales manager in Taiwan, while Sun was a contractor.
Efforts To Conceal Activity
Officials say the accused took extensive steps to hide their actions from manufacturers and U.S. authorities.
These included using hair dryers to remove labels and serial numbers from real servers and placing them on dummy machines left behind for inspection. Prosecutors said this helped mislead compliance teams while the actual equipment was shipped to China.
The Justice Department described the scheme as increasingly “brazen”, with more than half a billion dollars’ worth of servers allegedly diverted to China between April and mid-May 2025 alone.
Company Response And Market Impact
Super Micro said it placed Liaw and Chang on leave and ended its ties with Sun after learning of the charges.
The company reiterated that the alleged actions violated its internal policies and compliance systems. Its shares fell around 8% in after-hours trading following the announcement.
Focus On AI Chips And Supply Chains
While officials did not name specific chips involved, Nvidia dominates the AI chip market and supplies components used in such servers.
The case highlights growing concerns in Washington over the diversion of advanced U.S. technology to China, especially as AI becomes increasingly important in both commercial and military applications.
Arrests And Ongoing Investigation
Authorities said Liaw, a U.S. citizen, and Sun, a Taiwanese national, were arrested, while Chang remains at large.
The case is expected to intensify scrutiny on global technology supply chains and enforcement of export controls, particularly in the rapidly evolving AI sector.
(with inputs from Reuters)
