"Federal prosecutors charged Yih-Shyan "Wally" Liaw, a co-founder of Super Micro, along with company sales manager Ruei-Tsang Chang and contractor Ting-Wei Sun in a complex plot to divert advanced AI servers to China."
"The complaint describes how the trio allegedly routed U.S.-assembled machines through Taiwan facilities before rerouting them via Southeast Asian shell companies, where they were stripped of markings and repackaged for final delivery to Chinese buyers."
"To deceive compliance teams, the group allegedly staged thousands of non-functional "dummy" servers for inspections while the real units were shipped onward."
"Surveillance footage cited by authorities even shows workers using hair dryers to peel off labels and serial numbers from legitimate hardware and affix them to the decoys."
Super Micro Computer shares dropped 22% following the Justice Department's announcement of arrests related to a smuggling operation involving $2.5 billion worth of servers with banned GPUs. The arrests targeted co-founder Yih-Shyan Liaw and others for allegedly evading export controls. The operation involved routing U.S. machines through Taiwan and Southeast Asia, where they were repackaged for delivery to China. The incident raises concerns about compliance risks and governance within the company, despite no direct charges against Super Micro or Nvidia.
Read at 24/7 Wall St.
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