Super Micro Computer has initiated an independent investigation and begun an internal review of its global trade compliance procedures in response to recent criminal charges brought against three people linked to the company on allegations of export-control violations.
The Justice Department last month charged co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang and contractor Ting-Wei Sun with participating in a scheme to divert U.S.-made servers through Taiwan and Southeast Asia, according to the company. Prosecutors allege those products were repackaged into unmarked boxes in Southeast Asia and subsequently smuggled into China.
Super Micro said it was not named as a defendant in the case. After becoming aware of the charges, the company placed Liaw and Chang on leave and terminated Sun. Liaw also resigned from the company’s board in March following the indictment.
The Justice Department alleges the three individuals moved at least $2.5 billion worth of U.S. AI-related technology, including more than $500 million in shipments between April and mid-May of last year. Procurement data cited in recent reporting indicate that four Chinese universities, including two entities linked to the People’s Liberation Army, purchased Super Micro servers equipped with restricted AI chips over the past year. Earlier reporting from 2024 showed Chinese universities and research institutes have previously obtained restricted chips in servers manufactured by Super Micro and other vendors.
Governance and oversight steps
The independent investigation is being led by two independent members of Super Micro’s board - the lead independent director and the chair of the audit committee. Findings from their inquiry will be presented to the remaining independent directors, who have retained outside counsel to lead and coordinate the probe.
Specifically, the board has engaged the law firm Munger, Tolles & Olson to lead the investigation and retained consulting firm AlixPartners to provide forensic accounting expertise. The independent directors have not announced a timeline for concluding the inquiry.
Next steps and public disclosures
Super Micro has publicly stated the investigation and the internal compliance review are under way. The company will pass the independent directors’ findings to the broader board once available. No timetable for completion has been provided.
As the independent review proceeds, the company is concurrently evaluating its global trade compliance program to determine whether changes to policies, controls or oversight are warranted.
This report presents the steps the company has taken and the allegations as described by authorities and company statements; it does not add facts beyond those provided by those sources.