U.S. prosecutors have charged a co-founder of Super Micro Computer, Inc. in connection with an alleged scheme to illegally divert advanced artificial intelligence servers powered by Nvidia chips to customers in China, in what officials describe as one of the most significant enforcement actions involving restricted AI technology exports.
According to the indictment, Yih-Shyan Wally Liaw and two associates allegedly routed U.S.-assembled servers through a Southeast Asian intermediary company before the equipment was ultimately delivered to Chinese buyers. Prosecutors say the arrangement was designed to bypass U.S. export controls that restrict the transfer of high-performance computing hardware to China.
Authorities allege the group falsified documentation and staged compliance inspections to avoid detection. Investigators claim serial numbers were altered and warehouses were temporarily filled with substitute equipment during audit preparations. The indictment also states that unusually large shipment volumes to the intermediary company triggered internal compliance concerns at Super Micro, prompting temporary shipment pauses and reviews that prosecutors say were later undermined.
Super Micro has not been charged in the case. The company said it is cooperating with investigators and has placed Liaw and another accused executive on administrative leave while ending its relationship with a contractor linked to the allegations. In a statement, the company said the conduct described by prosecutors would violate its internal compliance policies and export control requirements.
The charges come amid increasing scrutiny by U.S. authorities over global supply chains involving advanced AI chips. Officials say the case reflects a broader push to enforce export restrictions first introduced in 2022 to limit the transfer of sensitive computing technology to China. Liaw and his co-defendants face multiple conspiracy charges related to export violations and smuggling offences that could carry prison sentences of up to 20 years if convicted. One of the accused remains at large while the others have appeared in federal court.
