Super Micro Co-Founder Resigns After Federal Indictment for Smuggling Nvidia AI Chips to China, Shares Plunge 33%
Summary
Super Micro Computer co-founder Wally Liaw resigns after a federal indictment charges him with smuggling Nvidia AI chip-laden servers into China through fake paperwork and decoy hardware, generating $2.5 billion in illicit sales since 2024, sending company shares crashing 33%.
Key Points
- Super Micro Computer co-founder Yih-Shyan 'Wally' Liaw resigns from the board after being federally indicted on charges of smuggling servers containing Nvidia AI chips into China.
- The indictment reveals a scheme involving fake paperwork, repackaged servers, and 'dummy' servers used to deceive compliance teams and a U.S. export control officer, generating approximately $2.5 billion in sales since 2024.
- Super Micro shares plunge 33% following the news, as the company places Liaw and sales manager Steven Chang on administrative leave and appoints DeAnna Luna as acting chief compliance officer.