Supermicro co-founder and CEO Yih-Shyan “Wally” Liaw, along with executives Ruei-Tsang “Steven” Chang and Ting-Wei “Willy” Sun, were charged with diverting USD $2.5 billion worth NVIDIA Artificial Intelligence GPUs to customers in China, in violation of U.S. export controls. The alleged scheme involved an ASEAN-based shell company that purchased the chips from NVIDIA and then diverted them to customers in China.
Supermicro said on Thursday that it placed Wally Liaw and Steven Chang on administrative leave and terminated Willy Sun. The company said the alleged conduct contravened its policies and compliance controls, including efforts to circumvent applicable export control laws and regulations. It also said it maintains a robust compliance program, is committed to full adherence to applicable U.S. export and re-export control laws and regulations, and is fully cooperating with the investigation.
The case centers on high-value server and datacenter hardware tied to NVIDIA Artificial Intelligence GPUs, an area that has become increasingly sensitive under U.S. trade restrictions involving China. Supermicro, known for server hardware including motherboards, rackmount chassis, and fully built servers, now faces scrutiny over the actions of senior leaders as regulators examine how the alleged diversion was carried out through an intermediary company in ASEAN.
Investor reaction was immediate. Supermicro stock dropped 11%, before rebounding, reflecting concern over the legal and compliance risks created by the charges and the potential impact on the company’s operations and reputation.
