TheRetroArcade
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Joined: Feb 2026
Supermicro has put them on administrative leave with another employee also charged, and a third has been fired.
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Three Chinese businessmen have been charged by the US government for allegedly diverting "high-performance computer servers assembled in the United States and integrating sophisticated US artificial intelligence technology to China."
The three 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.
Supermicro, a major datacenter company that builds server racks and more for businesses, says Liaw and Chang have been placed on administrative leave, while it has terminated its relationship with Sun.
Supermicro notes it "is not named as a defendant in the indictment" and that "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."
The indictment states that three individuals reportedly evaded export laws with false documents. They even staged dummy servers to mislead inspectors. Those dummy servers were reportedly left in America, while the real servers were sent to China. The US Office of Affairs argues that "convoluted transhipment schemes" were used to hide that the servers were actually going to China.
One scheme reported by the Office of Affairs is that workers would reportedly use a hair dryer to remove labels and serial number stickers, so they can fix them to server boxes and dummy servers. Even more notably, there's reportedly surveillance camera footage of this process happening.
Jay Clayton, US attorney for the Southern District of New York, says 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. Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to US national security."
Keep up to date with the most important stories and the best deals, as picked by the PC Gamer team.
Potential Chinese buyers will want their hands on whatever AI chips they can get, in order to keep building and refining their own competing AI models. The Chinese government was also reportedly cautious of the po...Read more: Full article on www.pcgamer.com
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Every Thursday
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Hardware nerds unite, sign up to our free tech newsletter for a weekly digest of the hottest new tech, the latest gadgets on the test bench, and much more.
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Three Chinese businessmen have been charged by the US government for allegedly diverting "high-performance computer servers assembled in the United States and integrating sophisticated US artificial intelligence technology to China."
The three 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.
Supermicro, a major datacenter company that builds server racks and more for businesses, says Liaw and Chang have been placed on administrative leave, while it has terminated its relationship with Sun.
Supermicro notes it "is not named as a defendant in the indictment" and that "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."
The indictment states that three individuals reportedly evaded export laws with false documents. They even staged dummy servers to mislead inspectors. Those dummy servers were reportedly left in America, while the real servers were sent to China. The US Office of Affairs argues that "convoluted transhipment schemes" were used to hide that the servers were actually going to China.
One scheme reported by the Office of Affairs is that workers would reportedly use a hair dryer to remove labels and serial number stickers, so they can fix them to server boxes and dummy servers. Even more notably, there's reportedly surveillance camera footage of this process happening.
Jay Clayton, US attorney for the Southern District of New York, says 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. Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to US national security."
Keep up to date with the most important stories and the best deals, as picked by the PC Gamer team.
Potential Chinese buyers will want their hands on whatever AI chips they can get, in order to keep building and refining their own competing AI models. The Chinese government was also reportedly cautious of the po...Read more: Full article on www.pcgamer.com
What do you think about this?