Three individuals linked to a US tech supplier have been charged in an alleged scheme to smuggle restricted artificial intelligence (AI) chips to China, according to the US Department of Justice.
Prosecutors say the trio conspired to move billions of dollars’ worth of technology by falsifying documents and using dummy equipment to evade compliance checks. The case centres on high-end semiconductors produced by Nvidia, whose advanced AI chips are subject to strict US export controls due to national security concerns.
Those charged include US citizen Yih-Shyan “Wally” Liaw, Taiwanese nationals Ting-Wei “Willy” Sun, and Ruei-Tsang “Steven” Chang, who remains at large. Liaw is a co-founder of Super Micro Computer, a California-based server manufacturer. The company confirmed the individuals had ties to the firm but stated it is not a defendant and is cooperating fully with investigators.
According to the DOJ, the group worked with a Southeast Asia-based company to place orders for servers containing restricted chips. They allegedly created false records to suggest the equipment would remain with that company, while in reality the servers were repackaged and secretly shipped to China.
Investigators say the operation involved thousands of “dummy” servers used to pass audits, while genuine equipment had already been diverted. In one instance, Sun allegedly used hair dryers to remove and reattach labels and serial numbers to disguise shipments.
Authorities estimate that the intermediary company purchased around $2.5 billion worth of equipment and moved large quantities of controlled AI technology into China without the required export licences.
The case highlights ongoing tensions between the US and China over access to advanced computing technology, particularly AI chips, which are seen as critical to military and economic competitiveness.
In a related case, two Chinese nationals were previously charged with routing restricted chips through countries such as Malaysia and Singapore before diverting them to Hong Kong and mainland China. US officials have reiterated that enforcement around export controls remains strict, warning that attempts to bypass restrictions on sensitive technologies will face significant legal consequences.
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