Supermicro terminates employees after investigation into alleged $2.5 billion AI chip smuggling

Investigation Concludes, Employees Terminated

Supermicro announced the completion of its independent investigation into the alleged smuggling of Nvidia AI hardware to China, resulting in the termination of several employees. The investigation, conducted by an external law firm and an independent forensic accounting consultant, released its findings to the public.

Senior Management Exonerated

The investigation found no evidence that Supermicro or its current senior executives were involved in the alleged AI chip smuggling. The company stated that the investigation team reviewed customer transactions related to the federal indictment and other restricted product sales, concluding that no current senior management had knowledge of the alleged diversion scheme or actual diversion of restricted products.

Compliance Program Recommendations Adopted

Supermicro stated it is adopting all recommendations to enhance its export compliance programs. The company also affirmed that its compliance personnel have acted in good faith to mitigate the risk of products subject to export controls being diverted to restricted parties or locations.

Background of the Allegations

The issue began in March with the arrest of Supermicro co-founder Yih-Shyan “Wally” Liaw, sales manager Ruei-Tsang “Steven” Chang, and third-party broker Ting-Wei “Willy” Sun. They were charged with conspiracy to unlawfully divert U.S. artificial intelligence technology to China. Reports estimate the alleged smuggling operation has moved hardware worth $2.5 billion since 2024, leading to shareholder concerns and securities fraud lawsuits against the company.