US charges 3 people tied to Super Micro Computer with conspiring to divert AI tech to China
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Many high-performance AI computer servers are made with Nvidia chips, some of which are subject to export controls.
PHOTO: REUTERS
WASHINGTON - Three people associated with AI-optimised server maker Super Micro Computer, including its co-founder, were charged with conspiring to unlawfully divert US artificial intelligence technology to China, the US Department of Justice (DOJ) said on March 19.
The Federal Bureau of Investigation said Yih-Shyan Liaw, Ruei-Tsang Chang and Ting-Wei Sun “allegedly conspired to sell billions of dollars worth of servers integrating sensitive, controlled graphics processing units (GPUs) to buyers in China, in violation of US export control laws”.
Many high-performance AI computer servers are made with Nvidia chips, some of which are subject to export controls.
California-based Super Micro Computer said it was informed by federal prosecutors of the indictment on March 19 and that the company itself was not named as a defendant in it.
The company also said it placed Liaw and Chang on leave and terminated its ties with Sun, who was a contractor. Super Micro Computer’s shares were down 8 per cent after the news.
Liaw co-founded Super Micro Computer in 1993, and joined its board of directors in 2023.
The DOJ accused the three people of participating in a systematic scheme to divert large quantities of AI technology to customers in China.
The DOJ statement did not mention Super Micro Computer by name.
It, however, said Liaw is a “co-founder, board member and senior vice-president of business development of a publicly traded US-based manufacturer that designs and builds high-performance computer servers for artificial intelligence and cloud computing applications, including servers that integrate AI graphics processing units”.
Chang was a sales manager in the Taiwan office of Super Micro Computer, while Sun was a contractor.
The DOJ indictment was unsealed on March 19 in a Manhattan federal court. The DOJ said Liaw, a US citizen, and Sun, a citizen of Taiwan, were arrested on March 19. Chang, a citizen of Taiwan, remains a fugitive.
“Together, the defendants and others conspired to systematically divert the US manufacturer’s servers with certain GPUs to China without a licence to do so from the US Department of Commerce,” the DOJ said.
The defendants allegedly fabricated documents, staged bogus equipment to pass audit inventories, and used a pass-through company to conceal misconduct and true clientele lists, the DOJ said.
Super Micro Computer said it was cooperating with the government’s probe.
“The conduct by these individuals alleged in the indictment is a contravention of the company’s policies and compliance controls, including efforts to circumvent applicable export control laws and regulations,” said the company. REUTERS
