A hacker has allegedly breached one of China’s supercomputers and is attempting to sell a trove of stolen data

US authorities have charged a co-founder of Super Micro Computer and two other individuals in a major export-control case involving the alleged diversion of advanced AI server technology to China, marking one of the most high-profile crackdowns yet on suspected smuggling of restricted American chip systems. The case centers on servers built with high-end Nvidia technology that prosecutors say were illegally rerouted despite strict US export restrictions.

According to US prosecutors, the alleged scheme involved Yih-Shyan “Wally” Liaw, a Super Micro co-founder, along with sales manager Ruei-Tsang “Steven” Chang and contractor Ting-Wei “Willy” Sun. Investigators claim the trio helped route US-made AI servers through Taiwan and parts of Southeast Asia before the products were ultimately smuggled into China. Authorities say the equipment involved was worth around $2.5 billion, with a particularly large volume of sales occurring in 2025.

Prosecutors Allege Complex Routing Network

The US Department of Justice alleges the defendants used intermediary companies and misleading documentation to disguise the true destination of the servers. Prosecutors say the products were repackaged in Southeast Asia and moved onward to China in violation of US export-control laws that restrict the sale of advanced AI-related hardware to Chinese buyers without government approval.

The case is especially significant because the servers were reportedly equipped with Nvidia’s advanced graphics processing technology, which has become central to artificial intelligence development and is tightly controlled by Washington over national security concerns. The US has imposed restrictions on the export of certain high-performance AI chips and systems to China since 2022.

Super Micro Launches Internal Probe

Following the indictment, Super Micro said it has started an independent investigation into the matter and has also begun an internal review of its global trade compliance program. The company stated that it is not named as a defendant in the criminal case.

Super Micro also confirmed it had taken internal action against those tied to the case. Liaw and Chang were placed on leave, while Sun was terminated. Liaw later resigned from the company’s board after the indictment became public.

Wider Pressure on AI Chip Enforcement

The allegations come as US regulators intensify efforts to stop advanced American AI technology from reaching China through third countries and indirect supply routes. Officials in both the US and Singapore have recently been investigating cases involving AI server shipments and suspected fraud tied to Nvidia-powered systems. In a related development, Singapore charged additional individuals in a separate fraud probe connected to AI chip-linked server transactions.

The case has raised fresh questions about how restricted chips and AI servers continue to move through global supply chains despite escalating export controls. Industry analysts say it could lead to even tighter scrutiny of server manufacturers, intermediaries, and data center hardware distributors operating across Asia.

Major Blow to Confidence in AI Hardware Supply Chains

The charges have already had a strong market and reputational impact. Earlier reporting showed that Super Micro’s shares fell sharply after the case emerged, reflecting investor concern over compliance failures and the company’s exposure to geopolitical risk surrounding AI infrastructure sales.

The prosecution is being seen as one of the clearest signals yet that Washington is prepared to aggressively enforce export restrictions tied to artificial intelligence hardware, especially as competition between the US and China intensifies over access to high-performance computing systems.