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Super Micro Probes Export Violations Allegations
8 Apr
Summary
- Company investigates indictment of three linked individuals for export violations.
- Alleged scheme involved routing US-made servers through Taiwan to China.
- Investigation led by independent board members with external legal support.
Super Micro has initiated an independent investigation following the indictment of three individuals associated with the company for alleged export-control violations. These charges relate to a scheme to route U.S.-made servers through Taiwan to Southeast Asia before being smuggled into China. The company also launched an internal review of its global trade compliance program.
The U.S. Justice Department charged co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and a contractor, Ting-Wei Sun, in connection with the alleged illegal export of U.S. AI technology. The department stated that at least $2.5 billion in U.S. AI technology was moved, with over half a billion dollars shipped in a recent period.
Super Micro, which was not named as a defendant, has placed Liaw and Chang on leave and terminated Sun's contract. Liaw resigned from the company's board in March. The investigation is being conducted by two independent board members and supported by an external law firm and forensic accounting experts.
This situation comes after reports that Chinese universities, some linked to the People's Liberation Army, had acquired Super Micro servers with restricted AI chips. Super Micro has stated that the independent directors have not yet set a timeline for completing their investigation.
