US federal prosecutors have charged Super Micro Computer co-founder Wally Liaw, a company employee, and an outside contractor with conspiring to unlawfully export American artificial intelligence technology to China, according to the Department of Justice indictment unsealed on 19 March.
The charges allege the three used a backdoor arrangement to divert Nvidia chips — which are subject to strict US export controls — by routing servers through south-east Asia before their onward shipment to China. Reuters reported the scheme involved billions of dollars worth of AI chips.
Super Micro, the San Jose-based server manufacturer, was not itself named in the indictment. The company has had a turbulent recent history, having faced an accounting investigation and a delayed annual filing that triggered a near-delisting from Nasdaq in 2024. It has since filed overdue financial statements and retained new auditors.
Nvidia, whose chips are at the centre of the alleged smuggling operation, is not accused of any wrongdoing. The case underscores the difficulty Washington faces in enforcing semiconductor export restrictions as demand for advanced AI hardware intensifies globally.
Shares in Super Micro fell on the news. The charges carry the potential for significant prison terms under US export control law.
