Super Micro Launches Independent Investigation Following Co-Founder's Criminal Case

• The alleged scheme moved at least $2.5 billion in U.S. AI technology to China, with over $500 million shipped between April and mid-May of last year
• Co-founder Liaw resigned from the board in March, while sales manager Chang was placed on leave and contractor Sun was terminated
• Independent board members are leading the investigation with support from law firm Munger, Tolles & Olson and forensic accounting firm AlixPartners, with no set completion timeline

Super Micro Launches Independent Investigation Following Export-Control Violations

Super Micro Computer announced Tuesday it has initiated an independent investigation after three individuals linked to the company were indicted on export-control violation charges by the U.S. Justice Department.

Key Individuals Charged:

• Co-founder Yih-Shyan Liaw (resigned from board in March)
• Sales manager Ruei-Tsang Chang (placed on leave)
• Contractor Ting-Wei Sun (terminated)

Allegations:

The three individuals allegedly orchestrated a scheme to circumvent U.S. export controls by routing American-made servers through Taiwan to Southeast Asia, where products were repackaged into unmarked boxes and smuggled into China. The operation allegedly moved at least $2.5 billion in U.S. AI technology, including over $500 million shipped between April and mid-May of last year.

Reuters previously reported that four Chinese universities, including two affiliated with the People's Liberation Army, purchased Super Micro servers containing restricted AI chips over the past year.

Company Response:

Super Micro, which was not named as a defendant, has launched both an independent investigation and an internal review of its global trade compliance program. The investigation is led by two independent board members—Lead Independent Director Scott Angel and Audit Committee Chair Tally Liu—with support from law firm Munger, Tolles & Olson and forensic accounting firm AlixPartners.

Timeline:

No completion date has been set for the investigation. The findings will be reported to the board's remaining independent directors.

This case highlights growing scrutiny over U.S. technology exports to China, particularly AI-related hardware with potential military applications.