Trending Now - Three Arrested in Alleged AI Technology Smuggling to China

WHO:

Yih-Shyan “Wally” Liaw, 71, co-founder and senior vice president of Super Micro Computer Inc., was arrested on March 19th, 2026.

Ting-Wei “Willy” Sun, 44, contractor for Super Micro Computer Inc., was arrested on March 19th, 2026.

Ruei-Tsang "Steven” Chang, 53, co-founder and sales manager for Super Micro Computer in Taiwan, remains a fugitive.

Yih-Shyan “Wally” Liaw, 71, co-founder and senior vice president of Super Micro Computer Inc.

Ruei-Tsang "Steven” Chang, 53, co-founder and sales manager for Super Micro Computer in Taiwan, remains a fugitive.

Ting-Wei “Willy” Sun, 44, contractor for Super Micro Computer Inc.

John A. Eisenberg, Assistant Attorney General for National Security.

Roman Rozhavsky, assistant director of the FBI’s Counterintelligence and Espionage Division.

Yih-Shyan “Wally” Liaw, co-founder and senior vice president of Super Micro Computer Inc.

Ruei-Tsang "Steven” Chang, co-founder and sales manager for Super Micro Computer in Taiwan.

Ting-Wei “Willy” Sun, contractor for Super Micro Computer Inc.

Yih-Shyan “Wally” Liaw, 71, senior vice president and board member of Super Micro Computer Inc.

Ting-Wei “Willy” Sun, 44, contractor for Super Micro Computer Inc.

Ruei-Tsang "Steven” Chang, sales manager for Super Micro Computer in Taiwan, remains a fugitive.

James C. Barnacle Jr., FBI Assistant Director in Charge.

Jay Clayton, U.S. Attorney.

WHAT:

The indictment alleges that during a three-week period from April 24th to May 15th, 2025, approximately $510 million worth of servers were shipped to China as part of the conspiracy.

Super Micro Computer Inc. stated that it has placed Liaw and Chang on administrative leave and terminated its relationship with Sun.

Super Micro Computer's stock dropped 27% on March 20th, 2026, potentially erasing nearly $5 billion from its market value.

The indictment alleges that during a three-week period from late April to mid-May 2025, approximately $510 million worth of servers were shipped to China as part of the conspiracy.

The defendants allegedly used a shipping and logistics company to repackage the servers into unmarked boxes to conceal their contents before they were shipped to China.

The defendants allegedly prepared false documents and records and transmitted false communications to show that the Southeast Asian company was the legitimate end buyer.

The defendants face up to 20 years in prison for conspiracy to violate the Export Control Reform Act, and additional counts of conspiracy to smuggle goods and defraud the U.S., each carrying up to five years.

The defendants were charged with conspiring to violate export control laws, smuggling goods from the U.S., and conspiring to defraud the U.S.

The indictment alleges that the defendants diverted $2.5 billion worth of servers, including $510 million in just a few weeks in 2025.

The indictment details that the defendants used a pass-through company based in Southeast Asia to obscure the true destination of the servers.

Three men charged with conspiring to smuggle billions of dollars of computer servers containing advanced Nvidia chips to China.

The indictment states that the men violated U.S. export control laws by diverting high-performance servers assembled in the U.S. to China between 2024 and 2025.

The indictment claims at least $510 million worth of Super Micro Computer's servers were diverted to China after assembly in the U.S.

Liaw and Chang directed executives of a Southeast Asian company to place orders for $2.5 billion worth of servers.

WHERE:

Manhattan federal court, New York.

Fremont, California (Liaw's residence).

San Jose, California (location of Super Micro Computer).

Taiwan (Sun's citizenship).

WHEN:

Charges were filed on March 19th, 2026.

Sun was held for a bail hearing on March 20th, 2026.

Charges filed on March 19th, 2026.

Servers were diverted between 2024 and 2025.

Liaw was arrested on March 19th, 2026.

Sun held for a bail hearing on March 20th, 2026.

WHY:

U.S. Attorney Jay Clayton stated, “Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to U.S. national security.”

The scheme poses a direct threat to U.S. national security, according to U.S. Attorney Jay Clayton.

The U.S. and China are competing for dominance in artificial intelligence technology.

HOW:

The defendants allegedly used a shipping and logistics company to repackage the servers into unmarked boxes to conceal their contents before they were shipped to China.

Surveillance cameras documented individuals using hair dryers to remove and reapply labels and serial number stickers to server boxes and dummy servers.

The defendants allegedly staged thousands of fake dummy servers at a warehouse rented by the Southeast Asian company to mislead compliance checks.

The defendants allegedly used "dummy" nonworking copies of the servers to deceive the manufacturer’s auditors.

Surveillance cameras documented individuals using hair dryers to remove and add labels and serial number stickers to the boxes and dummy servers.

The defendants staged thousands of "dummy" servers in a warehouse rented by the pass-through company to mislead compliance checks.

Defendants used fabricated documents and staged bogus equipment to pass audit inventories.

Utilized a pass-through company to conceal their misconduct and true clientele list.

(UPDATED March 20, 2026 17:14 UTC)

In a significant development, Yih-Shyan "Wally" Liaw and Ting-Wei "Willy" Sun were arrested on March 19, 2026, in connection with an indictment alleging that they conspired to ship approximately $510 million worth of servers to China between April 24 and May 15, 2025. Super Micro Computer Inc. has placed Liaw and Chang on administrative leave and terminated its relationship with Sun, while the company's stock dropped 27% today, potentially erasing nearly $5 billion from its market value. U.S. Attorney Jay Clayton emphasized that such diversion schemes pose a direct threat to national security, as evidence shows the defendants used a shipping company to conceal the contents of the servers before shipment.

(UPDATED March 20, 2026 07:18 UTC)

In a significant legal development, Yih-Shyan “Wally” Liaw, co-founder of Super Micro Computer Inc., and several associates have been indicted for allegedly conspiring to ship approximately $510 million worth of servers to China under false pretenses. The indictment claims that the defendants used a logistics company to repackage the servers and created fake documents to mislead authorities about the true nature of the shipments, with surveillance footage showing them altering labels and staging dummy servers to evade compliance checks. If convicted, they could face up to 20 years in prison for conspiracy to violate export laws, along with additional charges that could add even more time to their sentences.

(UPDATED March 20, 2026 05:20 UTC)

Three individuals associated with Super Micro Computer Inc. have been charged with conspiring to violate export control laws, smuggling goods from the U.S., and defrauding the government, with the indictment alleging they diverted $2.5 billion worth of servers, including $510 million in just a few weeks last year. The defendants reportedly used a pass-through company in Southeast Asia to hide the true destination of the servers and employed "dummy" nonworking copies to mislead auditors, while surveillance footage captured them altering labels and serial numbers on the boxes. Additionally, they staged thousands of these dummy servers in a warehouse rented by the pass-through company to evade compliance checks.

(UPDATED March 20, 2026 03:45 UTC)

In a significant legal development, three men have been charged with conspiring to smuggle billions of dollars worth of advanced Nvidia chip servers to China, violating U.S. export control laws. The indictment, filed on March 19, details how Yih-Shyan Liaw and Ruei-Tsang Chang directed a Southeast Asian company to place orders for $2.5 billion in servers, while Ting-Wei Sun remains a fugitive. U.S. Attorney Jay Clayton emphasized that this scheme poses a direct threat to national security, as the U.S. and China compete for dominance in artificial intelligence technology.