Three individuals, including a co-founder of a leading US-based server manufacturing company, have been accused by American authorities of participating in a scheme to illegally reroute advanced AI servers to China, breaching export control laws.
Those named in the indictment are Yih-Shyan “Wally” Liaw, a senior executive and co-founder of Super Micro Computer, Ruei-Tsang “Steven” Chang from the company’s Taiwan operations, and Ting-Wei “Willy” Sun, identified as a third-party broker. Liaw and Sun have been taken into custody, while Chang is currently at large.
According to prosecutors, the group allegedly worked together to redirect high-performance servers—reportedly powered by advanced AI chips—to buyers in China without the required approvals. These systems, originally assembled in the United States, are widely used in artificial intelligence and cloud computing infrastructure.
Investigators claim the accused used a network of intermediary companies across Taiwan and Southeast Asia to disguise the true destination of the shipments. The hardware was allegedly repackaged into plain boxes and forwarded to China, hiding both its origin and end use.
Authorities further allege that the operation involved falsified paperwork, manipulated internal records, and staged compliance procedures. In some inspections, officials say non-functional “dummy” servers were presented, while the actual equipment had already been shipped elsewhere.
Visual evidence released by the US Department of Justice reportedly includes images of these decoy servers and surveillance footage showing individuals preparing and repackaging the shipments.
Between 2024 and 2025, the intermediary firm is said to have purchased around $2.5 billion worth of servers, with over $510 million worth allegedly redirected to China in a short span during 2025.
Super Micro Computer, headquartered in Silicon Valley and known for supplying high-performance systems for AI infrastructure, has not been charged in connection with the case. However, the company has placed Liaw and Chang on leave and cut ties with Sun.
US officials say the case underscores the growing importance of enforcing export controls on advanced computing technologies, which are tightly regulated due to their potential military and national security implications.
The defendants face multiple charges, including conspiracy, smuggling, and defrauding the United States. If found guilty, they could face up to 20 years in prison on the most serious charges.
Authorities stressed that the allegations remain unproven, and all individuals are presumed innocent until proven guilty in court.
The case comes at a time when the US is tightening restrictions on the export of advanced AI chips and server systems to China, with stricter approval processes and increased scrutiny aimed at preventing illegal diversion.
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