Federal prosecutors in New York charged three men with conspiring to unlawfully divert billions of dollars worth of U.S. Artificial Intelligence technology to China. Yih-Shyan “Wally” Liaw, 71, a U.S. citizen and senior vice president and board member of Super Micro Computer, was arrested in California on Thursday, along with Ting-Wei “Willy” Sun, 44, a company contractor. Ruei-Tsang “Steven” Chang, a sales manager for the company in Taiwan, remains a fugitive, authorities said. Liaw was released on bail while Sun, who is a citizen of Taiwan, was held for a bail hearing.
Prosecutors allege the men worked to evade U.S. export controls by obtaining and shipping high-performance computer servers containing advanced Nvidia chips to restricted end users in China. The indictment said Liaw and Chang directed executives of a company in Southeast Asia to place orders for $2.5 billion worth of servers from the San Jose, California-based Super Micro Computer between 2024 and 2025. Authorities said the men became more brazen as time went on, as at least $510 million worth of Super Micro Computer’s servers were being diverted to China after their assembly in the U.S.
Investigators said the group used intermediary companies and deceptive practices to conceal the true destination of the technology, allowing shipments to bypass federal restrictions intended to protect sensitive U.S. innovations. The charges include conspiracy to violate export control laws, along with related offenses tied to the alleged illegal transfer of controlled technology overseas. Prosecutors framed the case as a national security matter tied to U.S. efforts to limit access to cutting-edge Artificial Intelligence systems.
Supermicro said the conduct alleged in the indictment violated the company’s policies and compliance controls, including efforts to circumvent export control laws and regulations. The company said it maintains a robust compliance program and is committed to full adherence to applicable U.S. export and re-export control laws and regulations. Prosecutors said the investigation remains ongoing, and if convicted, the men face significant prison sentences.
