After a lengthy FBI investigation, the chief federal prosecutor in New York has accused the co-founder of the American company, an employee in Taiwan, and a subcontractor of conspiring to illegally ship servers equipped with chips through Southeast Asia.
Chips from Nvidia smuggled into China through the co-founder and employees of an American company that is a major partner of the semiconductor giant in the server domain have caused a stir in the United States. While smuggling Nvidia components – including some AI chips that have been restricted for export to China since 2022 – has long been suspected, this case – the most significant to date by U.S. authorities – reveals a sophisticated scheme involving a top executive of an American company in the S&P 500.
2.5 billion dollars of technology
After several months of FBI investigation, the chief federal prosecutor in New York has indicted two men connected to Super Micro Computer, including the co-founder and head of business development Wally Liaw, an employee in Taiwan, and an accomplice at an Asian service provider. Together, they managed to evade the existing restrictions and move at least $2.5 billion worth of technology by concealing the true destination of servers equipped with chips. Assembled in the United States, these machines were sent through Super Micro’s facilities in Taiwan, before passing through several countries in Southeast Asia, where the servers were repackaged in unbranded boxes and discreetly sent to China. To create the illusion of compliance, the scheme involved showcasing thousands of dummy servers during inspections. The Super Micro stock dropped by 30% on Wall Street on Friday.
