DOJ Charges Super Micro Co-Founder For Smuggling $2.5 Billion In Nvidia GPUs To China
- Reference: 0181062006
- News link: https://yro.slashdot.org/story/26/03/20/177200/doj-charges-super-micro-co-founder-for-smuggling-25-billion-in-nvidia-gpus-to-china
- Source link:
> The co-founder of Super Micro Computer and two others were [2]charged with diverting $2.5 billion worth of servers with Nvidia's artificial intelligence chips to China , in violation of U.S. laws barring exports to that country without a license. Yih-Shyan Liaw, known as Wally; Ruei-Tsang Chang, known as Steven; and Ting-Wei Sun, known as Willy, were [3]charged with conspiring to violate export control laws, smuggling goods from the U.S. and conspiring to defraud the U.S.
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> Liaw, who co-founded Super Micro Computer and served on its board of directors, was arrested Thursday in California and released on bail. Sun, a contractor, is held awaiting a detention hearing. Chang, who worked in the Taiwan office of Super Micro, remains at large. [...] According to the indictment, the men used a pass-through company based in Southeast Asia to place orders to obscure that the servers would end up in China. The men worked with executives at the pass-through company to provide false documents to the server manufacturer to further the deception, the indictment said. They used a shipping and logistic company to repackage the servers into unmarked boxes to conceal their contents before they were shipped to China.
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> To deceive the manufacturer's auditors, who checked the pass-through company for compliance with export laws, the men allegedly used "dummy" nonworking copies of the servers when the actual servers were on their way to China. Two of the defendants allegedly worked to stage the dummy servers at a warehouse rented by the pass-through company, according to the indictment. Sun took photos and videos of the staged servers to one of the compliance auditors who instead of conducting the audit was "off-site enjoying entertainment paid for" by the pass-through company, according to the indictment. In another instance, prosecutors said surveillance cameras documented individuals using hair dryers to remove labels and add labels and serial number stickers to the boxes and dummy servers.
Super Micro said it's fully cooperating with the investigation, but that hasn't prevented its stock from plunging. It's down nearly 30% following the news.
The company issued the following statement: "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. Supermicro maintains a robust compliance program and is committed to full adherence to all applicable U.S. export and re-export control laws and regulations."
[1] https://slashdot.org/~AmiMoJo
[2] https://edition.cnn.com/2026/03/19/politics/super-micro-computer-founder-charged-ai-chips-china
[3] https://www.sec.gov/Archives/edgar/data/1375365/000137536523000044/exhibit991bodappointmentwa.htm
Wally, Willy & a guy named Steven walk in to a (Score:2)
That's the entire bit! I'm here until next Tuesday!!
Can we get a round of applause for this amazing wait staff!?
Supermicro is a bottom feeder (Score:2)
The scale of this is surprising, but not the act itself.
Re: (Score:2)
You've clearly never seen the inside of a data center. SuperMicro everywhere.
$12B in 2026Q2 revenue. Seems pretty damn good for a bottom feeder.
For fairness and comparison, Dell's last quarter - record breaking quarter - was $33B in revenue.
Re:Supermicro is a bottom feeder (Score:4, Insightful)
I think he suggests how they operate and perhaps their resultant product quality, not their relative performance business wise.
There were the accounting violations before, and now we see that a significant chunk of that revenue was allegedly on the back of ultimately illegal activity.
They tend to play fast and loose with various facets of running their business compared to others, and it shows in their quality, which isn't exactly great.
However, they do tend to come in much cheaper, and if you deem 'white box' type systems adequate, they are the only ostensibly American company to be found in that game.
Re: (Score:1)
But what *is* 'illegal' really?
You seem to be implying that "illegal" is just based on some arbitrary line, such that it's morally ok to cross the line as long as it benefits you. I know this is common thinking in the USA but I think it's very wrong.
It seems to me that mostly what "illegal" boils down to is "doing things that (directly or indirectly) hurt other people in the same society that you live in".
Re: Supermicro is a bottom feeder (Score:1)
So for example Trump decides that people in China shouldn't have whatever he doesn't want them to have this week, that makes it illegal - because one guy and his clown posse say so.
Is there concern for the greater good somewhere in there? ProTip: Is be interested to see the kind of moral and logical gymnastics you'd need to conclude 'yes'.
And actual it is fine to break the law without penalty - for example murdering people in another country without congress declaring war formally.
Re: (Score:2)
So the (elected) president (is supposed to) act in the interest of the country/American people. So yeah there is a rationale for a law there. whether you personally agree with what he decides is basically irrelevant to the law. Your only say comes at election time.
Re: murdering people being OK as long as they are overseas. Of course murder isn't ever OK but rightly or wrongly it is generally held by every government and nearly all religions that a) people die in war and b) it's not the same as murder. Pres
Re: (Score:2)
> You've clearly never seen the inside of a data center. SuperMicro everywhere.
SuperMicro is one of the "white box" server manufacturers. If you want a server, your choices are generally system integrators - Dell, HPE, etc. If you want to DIY your own server, you don't really have much choice. Sure you could use a commodity motherboard and hardware and stick it in a rackmount case, but you're not getting much other than a form factor.
SuperMicro though, will sell you a motherboard, a case, etc. with all the se
Super Micro? (Score:1)
Is this the same Super Micro that either makes or used to make computer motherboards?
Or am I thinking of a different thing altogether. I just have a vague recollection of something Super Micro several years ago.
yes (Score:1)
They are an absolutely massive server company based out of San Jose, they got started by undercutting incumbents like Dell and HP.
Re: (Score:1)
Indeed the traditional Sicilian meme. If they don't volunteer, the CCP will threaten their families and infest Slashdot with Karma-whoring sock-puppets.
\o/ (Score:1)
"Not everyone agrees that we are the boss of them (even though we have nukes) - more (fake) news at ten"
Surprising (Score:2)
Guess he's not rich enough to get away with it.
Re: (Score:2)
Needs to gift something gold fast! Or should have done it first: Nvidia just met with Trump 1st and he allowed them to sell their 2nd best stuff to China (which in some cases is better; even so, it's not that many months behind... just buy some more since they are cheaper anyhow.)
An American Firm? Hardly! (Score:2)
Well, I know where I'm NOT buying my next desktop!
Games Nexus (Score:3)
Gamers Nexus had a documentary about GPU smuggling:
[1]https://youtu.be/1H3xQaf7BFI [youtu.be]
It was taking down shortly by a false copyright claim from Bloomberg. There's, honestly not enough about actual GPU smuggling in it except towards the end. Still interesting to see actual arrests.
[1] https://youtu.be/1H3xQaf7BFI
Re: (Score:1)
use your brain, the answer is obvious to anyone with a modicum of critical thinking but based on your comment... well... that's not the only personal area you are lacking in.