Supermicro says only three employees were involved in alleged server smuggling scheme
Updated
Updated · Fortune · May 5
Supermicro says only three employees were involved in alleged server smuggling scheme
4 articles · Updated · Fortune · May 5
On its first earnings call since March indictments, CEO Charles Liang said only cofounder Yih-Shyan “Wally” Liaw and two others were implicated in alleged $2.5bn exports to China.
The company said it does not expect to restate earnings, is running a board-led internal investigation, and remains confident supplier allocations and customer relationships are intact; shares rose 18% after hours.
Prosecutors allege the defendants routed Nvidia GPU servers to China in 2024 and 2025 using fake warehouses; Supermicro was not charged, and reported quarterly revenue of $10.2bn, up 123% year on year.
How did a founder's $2.5B smuggling scheme evade Supermicro's notice for years?
Is the Supermicro case a warning of systemic rot in America's AI supply chain?