US authorities have arrested Yih-Shyan “Wally” Liaw, co-founder of Super Micro Computer, Inc., over an alleged $2.5 billion scheme to smuggle advanced AI-integrated servers to China.
The Justice Department unsealed an indictment charging Liaw and two Super Micro sales executives, Steven Chang and Willy Sun, with conspiring to violate US export controls. Prosecutors allege they used shell companies, falsified documents, and staged equipment to bypass audits.
The conspiracy reportedly moved sensitive GPU-laden servers to a Chinese buyer between 2024 and 2025, with $510 million in transactions occurring in just two months. FBI officials called the operation a sophisticated breach of national tech security.
Liaw and Sun are in custody and will appear in federal court in Northern California. Chang, a Taiwanese citizen based overseas, remains at large.
Super Micro, valued at $18.5 billion, was not charged. The company stated the actions were contrary to its policies and confirmed full cooperation with investigators.
Following the news, Super Micro’s stock dropped 13.25% in after-hours trading, wiping hundreds of millions in market value despite earlier gains.