Super Micro Co-Founder Charged Over $2.5B AI Server Diversion, Shares Fall 9%
Super Micro Computer's co-founder Wally Liaw was charged with conspiring to divert $2.5 billion in AI-capable servers through a Southeast Asia intermediary for shipment to China in violation of US export controls. The news triggered a more than 9% share price drop following the allegations.
1. Criminal Charges Against Co-Founder
Yih-Shyan “Wally” Liaw was indicted in New York on charges of conspiring to illegally divert billions of dollars worth of AI-capable servers to China in violation of US export laws. Two other individuals, including a Taiwan office manager and an outside contractor, are also charged, with one remaining at large.
2. Alleged Export Violation Scheme
Prosecutors allege that beginning in 2024 the defendants and collaborators sold $2.5 billion in high-performance servers—flagship models incorporating Nvidia GPUs—to a Southeast Asia intermediary with the intention of forwarding them to Chinese customers in unmarked packaging.
3. Stock Market Reaction
Following the announcement, Super Micro's shares plunged more than 9% in after-hours trading, erasing much of the stock's 5.2% year-to-date gain and highlighting investor concerns over potential legal liabilities and export control violations.
4. Company Response and Compliance Measures
Super Micro placed Liaw and the Taiwan office manager on administrative leave, terminated its relationship with the contractor, and is fully cooperating with investigators. The company reiterated its commitment to a robust compliance program and strict adherence to US export control regulations.