Super Micro dives after cofounder charged with allegedly smuggling AI chips to China
Super Micro Computer plunged over 25% in premarket trading on Friday after cofounder Yih-Shyan “Wally” Liaw, another worker, and a company contractor were charged by US prosecutors with allegedly conspiring to sell $2.5 billion worth of AI servers containing Nvidia chips to China, in violation of US export controls.
Super Micro was not named in the DOJ indictment, which was released on Thursday.
Prosecutors say the three charged suspects, including Liaw, used a pass-through company to place orders, making it appear the servers were meant for “legitimate commercial activity” while obscuring their actual “China-based end customers.”
Between 2024 and 2025, the pass-through company purchased roughly $2.5 billion worth of servers from Super Micro, including more than $510 million worth of US-assembled servers with Nvidia GPUs diverted to China between late April and mid-May 2025 alone, per the indictment.
Super Micro’s flagship products are servers integrating Nvidia GPUs, which have been subject to strict US export controls since 2022, preventing the sale of advanced AI chips to China without a license.
In a statement Thursday, Super Micro said it has placed Liaw and the other accused worker on administrative leave, and has severed ties with the contractor. While not named as a defendant in the indictment, the company said it has been “cooperating fully with the government’s investigation and will continue to do so.”
Nvidia said “strict compliance is a top priority” in a release, adding that it does not provide service or support for systems diverted illegally to China. Super Micro accounts for roughly 9% of Nvidia’s revenue, according to Bloomberg data.
Super Micro’s flagship products are servers integrating Nvidia GPUs, which have been subject to strict US export controls since 2022, preventing the sale of advanced AI chips to China without a license.
In a statement Thursday, Super Micro said it has placed Liaw and the other accused worker on administrative leave, and has severed ties with the contractor. While not named as a defendant in the indictment, the company said it has been “cooperating fully with the government’s investigation and will continue to do so.”
Nvidia said “strict compliance is a top priority” in a release, adding that it does not provide service or support for systems diverted illegally to China. Super Micro accounts for roughly 9% of Nvidia’s revenue, according to Bloomberg data.
