"Somewhere in a rented warehouse in Southeast Asia, a man was using a hair dryer on a server box. Not to dry it. To loosen the adhesive on a serial-number sticker, so that it could be carefully peeled away and pressed onto a different machine, one that had never been plugged in, never booted, and was never intended to reach its declared destination."
"The indictment charges three men: Yih-Shyan 'Wally' Liaw, Ruei-Tsang 'Steven' Chang, and Ting-Wei 'Willy' Sun, who allegedly orchestrated the diversion of approximately $2.5 billion worth of servers to customers in China, via a front company in Southeast Asia."
"The charges include conspiracy to violate the Export Controls Reform Act, conspiracy to smuggle goods from the United States, and conspiracy to defraud the government, offences carrying a combined maximum of 30 years in prison."
The indictment of Super Micro's co-founder reveals a scheme involving the diversion of $2.5 billion worth of servers to China. A man was caught using a hair dryer to remove serial-number stickers from server boxes, allowing them to be repurposed for unapproved machines. The indictment charges three individuals with orchestrating this operation through a front company in Southeast Asia. The charges include conspiracy to violate export controls and smuggling, with potential prison sentences totaling 30 years. The incident highlights significant vulnerabilities in America's semiconductor export control system.
Read at TNW | Insider
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