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DOJ Unseals Indictment Alleging $2.5 Billion Supermicro Server Diversion to China

Prosecutors describe a Southeast Asia routing scheme that bypassed U.S. export controls on Nvidia‑equipped servers.

Overview

  • Federal agents arrested co‑founder Yih‑Shyan “Wally” Liaw, who was released on an unsecured bond after an initial appearance, while contractor Ting‑Wei “Willy” Sun remains in custody and Taiwan general manager Ruei‑Tsang “Steven” Chang is a fugitive.
  • The indictment outlines a pipeline in which U.S.‑assembled servers were sent to Taiwan, routed to a Southeast Asian company, repackaged into unmarked boxes, and covertly forwarded to China using falsified paperwork and staged “dummy” servers.
  • Prosecutors allege roughly $2.5 billion in Supermicro servers moved through the scheme since 2024, including about $510 million shipped to China between late April and mid‑May 2025.
  • Supermicro says it is not charged and is cooperating with investigators, has put implicated employees on leave, ended its relationship with the contractor, accepted Liaw’s resignation from the board, and named DeAnna Luna acting chief compliance officer.
  • Shares of Super Micro Computer fell about 28%–33% on Friday to a 52‑week low as investors weighed legal risks and potential customer shifts.