Super Micro Co-Founder Charged Over $2.5B Nvidia GPU Smuggling Scheme
Super Micro co-founder Yih-Shyan Liaw was charged in a US federal scheme to illegally divert $2.5 billion worth of Nvidia GPU-equipped servers to China via a Southeast Asia intermediary. Following the charges, the company suspended Liaw and saw its shares drop over 9% in late trading.
1. Charged Executives and Scheme Details
US prosecutors charged Yih-Shyan Liaw and associates Ruei-Tsang Chang and Ting-Wei Sun with conspiring to divert $2.5 billion in Super Micro servers equipped with Nvidia GPUs through a Southeast Asia intermediary for illicit shipment to China. The servers were shipped in unmarked boxes starting last year, violating US export controls.
2. Stock Market Reaction
Super Micro's shares plunged over 9% in late trading after the charges became public, reversing an earlier 5.2% year-to-date gain as investors weighed potential legal liabilities and management turmoil.
3. Company Response and Compliance
The company placed Liaw and Chang on administrative leave and severed ties with Sun, affirming its commitment to full compliance with US export and re-export control laws. Super Micro emphasized its robust compliance program and internal controls while cooperating with the investigation.