Three charged in the US with smuggling AI chips into China | Science and Technology News

Three individuals connected to Super Micro Computer, including cofounder Yih-Shyan Liaw, have been charged by the US Department of Justice for allegedly smuggling over $2.5 billion worth of US AI technology to China in violation of export laws.
The Justice Department did not name Super Micro directly but indicated that it involved a “US manufacturer,” who later confirmed it as themselves. The company declared that it was not formally named a defendant but had fully cooperated with investigators.
The defendants, including Ruei-Tsang Chang and Ting-Wei Sun, used complex measures to disguise the shipments, including smuggling AI chips through Taiwan, disguising the servers, and transferring them into unmarked boxes to China.
The US has imposed export restrictions on advanced AI chips to China since 2022, and such actions have been deemed a direct threat to US national security by US officials.
Liaw and Sun were arrested while Chang remains at large. Liaw was released on bail; Sun’s case is pending a bail hearing. Super Micro responded by placing Liaw and Chang on leave and terminating its relationship with Sun.
The company’s shares dropped 8 percent following the indictment. While the specific AI chips involved were not disclosed, the market is heavily dominated by companies like Nvidia, which emphasize strict compliance with export laws.

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