Super Micro Co-Founder Arrested in $2.5B AI Chip Case

TLDR

• US authorities arrested Super Micro co-founder Yih-Shyan “Wally” Liaw over an alleged $2.5 billion AI chip smuggling scheme.
• Prosecutors charged sales executives Ruei-Tsang “Steven” Chang and Ting-Wei “Willy” Sun in the same case.
• The Justice Department said the trio conspired to export controlled servers with advanced AI chips to China.
• Authorities alleged that the group used fabricated documents and staged equipment to conceal the transactions.

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US authorities arrested Super Micro co-founder Yih-Shyan “Wally” Liaw over an alleged $2.5 billion AI chip smuggling scheme. Prosecutors also charged sales executives Ruei-Tsang “Steven” Chang and Ting-Wei “Willy” Sun in the case. The Justice Department said the trio conspired to export controlled servers with advanced AI chip components to China.

Super Micro and AI Chip Export Allegations Detailed

Federal prosecutors unsealed an indictment in the Northern District of California on Thursday. They charged Liaw, Chang, and Sun with violating US export control laws. Prosecutors said the group conspired “to sell billions of dollars’ worth of servers integrating sensitive, controlled graphics processing units to buyers in China.”

Authorities said the scheme covered transactions across 2024 and 2025. They alleged the defendants sold about $2.5 billion worth of servers to a China-based company. They also said $510 million in sales occurred between April and May 2025.

Prosecutors stated that the trio used concealment tactics to avoid detection. They said the defendants fabricated documents and staged bogus equipment during audits. They also used a pass-through company to hide the true customer list.

James Barnacle, Jr., FBI assistant director in charge of the New York Field Office, described the conduct in detail. He said, “These defendants allegedly fabricated documents, staged bogus equipment to pass audit inventories, and used a pass-through company to conceal their misconduct and true clientele list.” Authorities said Chang remains outside the United States.

Liaw and Sun appeared before a judge after authorities arrested them. Officials confirmed that Chang, a Taiwanese citizen, remains a fugitive. The Justice Department continues to pursue his arrest.

Super Micro Response and Stock Reaction

Super Micro did not face charges in the indictment. The company stated that the alleged actions contradicted its internal policies and compliance controls. A spokesperson said, “The company has been cooperating fully with the government’s investigation and will continue to do so.”

The spokesperson also confirmed that authorities did not name Super Micro as a defendant. The company operates from California and reports a market value of $18.5 billion. It provides high-performance server and data center hardware to major technology firms.

Super Micro lists IBM among its large-scale customers. The company also works with infrastructure partners such as Nvidia and Google. Authorities did not accuse those firms of wrongdoing in the case.

Super Micro stock rose during regular trading hours on Thursday. However, shares fell after the Justice Department announced the indictment. The stock dropped 13.25% to $26.71 in after-hours trading.

Court proceedings will continue in the Northern District of California. Prosecutors have not released further details about additional charges. The Justice Department confirmed the arrests and the outstanding fugitive status as of Thursday.

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