Co-founder charged with smuggling $2.5bn in AI chips to China

Three Chinese businessmen have been charged by the US government with allegedly diverting "high-performance computer servers assembled in the United States and integrating sophisticated US artificial intelligence technology to China." The defendants are Yih-Shyan “Wally” Liaw, co-founder of Supermicro; Ruei-Tsang “Steven” Chang, a Supermicro sales manager in Taiwan; and Ting-Wei “Willy” Sun, a contractor of Supermicro.

One alleged scheme involved workers using a hair dryer to remove labels and serial-number stickers so they could affix them to other server boxes and dummy servers; the Department of Justice released photos and surveillance footage that reportedly show the process.

Jay Clayton, US attorney for the Southern District of New York, said the three attempted to export chips "through a tangled web of lies, obfuscation, and concealment—all to drive sales and generate revenues in violation of US law.

United States, Southern District of New York

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