Super Micro shares plunge as US charges co-founder, two more for smuggling AI chips to China
Super Micro suffered a significant blow as its shares plummeted by 33% following the charges brought against three individuals associated with the company, including its co-founder. The charges allege that they were involved in smuggling billions of dollars worth of AI technology to China.
Although the company was not directly named in the complaint by US prosecutors, it confirmed its cooperation with the investigation. Analysts at Melius Research warned of potential risks to Super Micro’s revenue as customers reconsider their supplier exposure, with Dell expected to benefit due to its scale and close ties with Nvidia.
The US Justice Department accused Super Micro co-founder Yih-Shyan Liaw, along with sales manager Ruei-Tsang Chang and contractor Ting-Wei Sun, of orchestrating a scheme to transport US-made servers through Taiwan to Southeast Asia. From there, the servers were repackaged into unmarked boxes and smuggled into China, involving at least $2.5 billion in US AI technology.
Super Micro has taken action by placing the employees on leave and terminating its relationship with the contractor. The US had previously implemented chip export controls to prevent Beijing’s military from benefiting from its technology and to curb the advancement of China’s AI sector.
Charges China Chips Cofounder plunge smuggling SuperMicroshares
