Three Super Micro Affiliates Charged in $2.5B AI Server Smuggling

Federal prosecutors in Manhattan charged three individuals affiliated with Super Micro Computer Inc., including company cofounder YihShyan "Wally" Liaw, with conspiring to smuggle approximately $2.5 billion worth of advanced artificial intelligence servers to China, violating U.S. export control laws. The indictment, unsealed Thursday in federal court, alleges the scheme diverted high-performance servers containing restricted Nvidia graphics processing units to Chinese buyers without required government licenses.

Liaw, a 71-year-old U.S. citizen and senior vice president of business development at the San Jose, California-based company, along with RueiTsang "Steven" Chang, a 53-year-old sales manager in Taiwan, and TingWei "Willy" Sun, a 44-year-old Taiwanese contractor, face multiple counts including conspiracy to violate the Export Control Reform Act, conspiracy to smuggle goods, and conspiracy to defraud the United States. Each charge carries potential penalties of up to 20 years in prison if convicted.

According to the indictment, the defendants orchestrated the operation from 2024 through 2025 by directing a Southeast Asian company to place large orders for Super Micro...