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Three men charged for smuggling billions in US AI technology to China

Mar 20, 2026, 1:31 AM82
(Update: Mar 23, 2026, 1:00 AM)
country primarily in North America
country in East Asia
American manufacturer of computer servers and enterprise equipment

Three men charged for smuggling billions in US AI technology to China

  • Federal prosecutors filed charges against three individuals linked to Supermicro for illegally exporting advanced AI technology to China.
  • The defendants allegedly used fake documentation and misled authorities while shipping over $2.5 billion worth of restricted technology.
  • This indictment highlights the ongoing tension and competition between the U.S. and China over technological dominance and legal compliance.
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In the United States, three men associated with Super Micro Computer Inc. were charged with orchestrating an elaborate scheme to illegally export advanced AI technology to China, including Nvidia chips, in direct violation of U.S. export laws. The indictment details how between 2024 and 2025, these officials, Yih-Shyan "Wally" Liaw, Ruei-Tsang "Steven" Chang, and Ting-Wei "Willy" Sun, conspired to divert around $2.5 billion worth of computer servers. Liaw and Sun were arrested, while Chang remains at large. The defendants allegedly used a Southeast Asia-based company as a facade to mislead authorities regarding the true destination of the technology. To execute the plan, the accused created false documentation and shipped dummy servers to mask the smuggling of functioning servers loaded with AI technology. The servers were often routed to Taiwan before being repackaged for shipment to China. Their conduct not only breached company policies but also the fundamental U.S. export control laws designed to prevent sensitive technology from reaching adversaries, reflecting growing concerns over national security. Nvidia’s chips are critical to the evolving artificial intelligence sector, which holds immense potential for both economic and military advancement. The U.S. government has established strict regulations on exporting advanced chips to specific countries, particularly China, due to national security risks. This case highlights ongoing tensions between the U.S. and China over technological supremacy, where illegal trade practices threaten the security of proprietary technologies. Supermicro stated that it is fully cooperating with the investigation and has placed the involved parties on administrative leave, emphasizing its commitment to compliance with export-control regulations. This indictment serves as a warning against illegal diversion of technology and demonstrates the U.S. government's resolve to clamp down on similar operations that could undermine the nation’s technological edge. The consequences for the defendants could be severe, as conspiracy charges of this nature could lead to lengthy prison sentences if they are convicted.

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