Three men associated with Super Micro Computer Inc.(including a senior vice president of the company) were charged Thursday with conspiracy to “smuggle high-performance servers into China” that contained chips Nvidia. The indictment, filed in Manhattan federal court, alleges that the men planned to divert massive quantities of servers assembled in the United States between 2024 and 2025, in violation of U.S. export control laws.
FBI Assistant Director James C. Barnacle Jr. said the defendants used forged documents, fabricated false equipment and exploited shell companies to cover up their real activity, while U.S. Attorney Jay Clayton called the scheme an “ immediate threat to national security .”
See also: Former Google engineers accused of transferring trade secrets to Iran
The strategic value of Nvidia chips
Nvidia processors have become a key component of data centers that power artificial intelligence, a technology that could drastically change society and affect the geopolitical balance of power. The race for dominance in artificial intelligence has led the United States and China into intense competition.
Former President Joe Biden imposed restrictions on Nvidia's artificial intelligence chip sales to China, a measure that Donald Trump maintained for the most powerful processors, while lower-power chips were allowed with a 15% commission to the US government.
The defendants and the investigation
Yih -Shyan “Wally” Liaw, 71, a senior vice president and board member of Super Micro, was arrested in California along with Ting-Wei “Willy” Sun, 44 , a contractor for the company. Ruei-Tsang “Steven” Chang, a sales manager in Taiwan, remains at large. Liaw was released on bail, while Sun was held for questioning.
According to the indictment, the three defendants led company employees to Southeast Asia to order servers worth $2.5 billion, diverting at least $510 million to servers in China after assembly.
See also: China wants its own post-quantum cryptography standards (instead of NIST)
Company reactions
Super Micro Computer issued a statement, stressing that the alleged behavior violates the company's policies and compliance controls. "The company is fully cooperating with authorities," it said, emphasizing that it is not being charged.
Nvidia stressed the importance of strict regulations export and stated that it does not support any illegal hardware diversion.
Economic and geopolitical dimension
Despite sales restrictions in China, Nvidia has seen a massive increase in value over the past three years, with its market cap soaring from about $400 billion at the end of 2022 to $4.3 trillion today.
Nvidia CEO Jensen Huangsaid demand for artificial intelligence chips continues to grow and that orders are estimated to reach $1 trillion, double last year's estimate, showing the enormous economic and strategic importance of the company's hardware for AI.
See also: China tops America's cyber threat list
The future of AI and exports
This case highlights the critical role that export restrictions play in U.S. technological sovereignty and national security. With AI processors being strategic assets, monitoring distribution routes and complying with legislation is essential to prevent violations that could affect the international balance of power and the development of AI globally.
