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StocksMediumUpdated×3•Originally published 20 March 2026•Updated 20 March 2026•

1 min read

Supermicro Co-founder Arrested Over Alleged $2.5 Billion Nvidia Chip Smuggling to China

Key Facts

1Supermicro co-founder Yih-Shyan “Wally” Liaw was arrested for allegedly smuggling $2.5 billion in GPUs to China.

3 months ago

Version History

19 additional sources confirmed this story

Version 33 months ago

What changed: Co-founder Yih-Shyan Liaw has officially resigned from the board immediately following the smuggling allegations.

Version 23 months ago

What changed: The update provides details on the smuggling method involving a Southeast Asian shell company and confirms the formal federal indictment.

Version 13 months ago

What changed: Updated to include a 19% stock decline and internal disciplinary actions against employees and a contractor.

Super Micro Computer shares faced intense pressure following the arrest of co-founder Yih-Shyan “Wally” Liaw for allegedly smuggling $2.5 billion worth of advanced Nvidia GPUs to China. The company announced on Friday that Liaw has resigned from its board of directors, effective immediately, following the unsealing of the federal indictment. US prosecutors allege the scheme involved funneling high-end servers through a Southeast Asian shell company to bypass export restrictions and reach Chinese buyers. In response to the investigation, Supermicro has placed two employees on leave and terminated the contract of one contractor. The incident raises significant concerns regarding the company's internal compliance protocols and its adherence to U.S. export controls on sensitive AI technology. Investors remain wary as the company grapples with the fallout of these charges and the resulting shifts in its corporate governance structure.