Supermicro Executive Indicted
U.S. prosecutors have charged Super Micro Computer’s co‑founder and two others in an alleged $2.5 billion scheme to smuggle Nvidia AI chips to China, using fake paperwork and dummy servers, and the indictment sent Supermicro shares tumbling ~25–28%. The case is a stark reminder that hardware supply chains and export controls are now first‑order risks for AI infrastructure. (cnn.com)
The indictment unsealed March 19, 2026 was filed in the U.S. District Court for the Southern District of New York and opens with “COUNT ONE (Conspiracy to Violate the Export Control Reform Act).” (media.washtimes.com)) Prosecutors say the alleged scheme began in or about 2024 and that, by their example, approximately $510 million worth of the manufacturer’s servers were diverted during the period from late April 2025 through mid‑May 2025. (justice.gov)) The three defendants named in the charging documents are Yih‑Shyan “Wally” Liaw, Ruei‑Tsang “Steven” Chang, and Ting‑Wei “Willy” Sun; the DOJ says Liaw and Sun were arrested and presented in the Northern District of California while Chang remains a fugitive. (justice.gov)) Super Micro Computer stated it is not named as a defendant, that it placed the two employees on administrative leave and terminated the contractor, and later reports say Liaw resigned from the company’s board. (ir.supermicro.com)) The unsealed court filing sets out multiple criminal counts, including a conspiracy to violate export‑control law and related counts tied to smuggling and defrauding the United States, as reflected in the grand jury indictment language. (media.washtimes.com)) Market reaction was immediate: several outlets reported Supermicro shares plunged sharply in after‑hours and intraday trading (with one report citing a roughly 33% drop), and a regulatory filing cited by CNBC noted Liaw controlled about $464 million worth of Supermicro stock. (cnbc.com))
