Super Micro Shares Plunge 25% After Co-Founder Charged in $2.5B Chip Smuggling Scheme
Super Micro stock sank 25% after the company’s co-founder and two associates were indicted for diverting over $2.5 billion in Nvidia chips to China without export licenses. The firm placed the executives on leave, ended one contractor relationship and confirmed full cooperation with investigators.
1. Indictment and Allegations
A federal indictment charges co-founder Yih-Shyan Wally Liaw, sales manager Ruei-Tsan Steven Chang and contractor Ting-Wei Willy Sun with removing serial numbers from servers loaded with Nvidia GPUs and exporting over $2.5 billion of equipment to China without Commerce Department licenses.
2. Market Reaction
Shares of Super Micro fell 10% in regular trading and an additional 12% in after-hours trading following the announcement, reflecting investor concern over legal risks and potential sanctions affecting its AI server business.
3. Company Response
Super Micro has placed Liaw and Chang on administrative leave, severed ties with Sun and emphasized it is not named as a defendant. The company stated it is fully cooperating with investigators to resolve the matter.