Super Micro Shares Tumble After Smuggling Charges
Super Micro Computer Inc shares dropped sharply on Thursday after U.S. authorities charged three individuals, including co-founder Yih-Shyan Liaw, in an alleged scheme to smuggle advanced artificial intelligence technology to China.
The stock plunged as much as 14.6% in after-hours trading following the news.
DOJ Charges Linked to AI Server Exports
The U.S. Department of Justice announced charges against three individuals accused of conspiring to export high-performance AI servers to China in violation of U.S. export restrictions.
According to the company, those charged include two employees and one contractor.
Co-Founder Arrested in Ongoing Investigation
Authorities confirmed that Yih-Shyan Liaw was arrested on Thursday as part of the investigation.
Officials allege the group used falsified documentation, staged equipment, and complex transshipment methods to conceal the true destination of restricted AI technology.
$2.5 Billion in Sales Tied to Scheme
The Department of Justice stated that the alleged activities contributed to approximately $2.5 billion in sales for Super Micro between 2024 and 2025.
These developments have raised concerns over compliance and oversight within the company.
Company Responds, Cooperates with Authorities
Super Micro clarified that it has not been named as a defendant in the case and is cooperating fully with investigators.
The company also confirmed that two employees involved have been placed on administrative leave, while the contractor has been dismissed.
Export Controls and Nvidia Chip Restrictions
Super Micro produces high-performance AI servers that incorporate chips from NVIDIA, making them subject to strict U.S. export regulations.
Currently, the company is not authorized by the U.S. Commerce Department to export such systems to China, highlighting the seriousness of the alleged violations.
