Three individuals connected to a US tech firm have been indicted by the United States Department of Justice (DOJ) for their alleged role in a massive scheme to smuggle billions of dollars worth of restricted Nvidia AI chips to China, bypassing strict export controls.
Prosecutors accuse the suspects of using fake documents, dummy equipment, and even hair dryers to tamper with labels in a bid to dodge compliance checks.
The plot centred on high-performance semiconductors from Nvidia, which are tightly regulated by the US due to fears they could boost China’s military and AI capabilities.
Yih-Shyan “Wally” Liaw, a US citizen and co-founder of California-based Super Micro Computer (a server maker), has been charged alongside two Taiwanese nationals: Ting-Wei “Willy” Sun and Ruei-Tsang “Steven” Chang (who remains at large).
The group reportedly partnered with a Southeast Asian firm to order servers packed with banned chips. They falsified records claiming the gear would stay in Asia, but repackaged and shipped it covertly to China.
Tactics included deploying thousands of fake “dummy” servers for audits, while real restricted tech was diverted. Sun allegedly used household hair dryers to swap serial numbers and labels.
Super Micro Computer confirmed the suspects’ links but stressed it faces no charges and is aiding the probe.
The DOJ estimates the intermediary bought $2.5 billion in equipment, illegally funneling vast amounts of controlled AI tech to China without licences.
This case underscores escalating US-China tech rivalry, where advanced chips are viewed as vital for national security and economic edge.
In a parallel probe, two Chinese nationals were earlier charged for rerouting chips via Malaysia, Singapore, Hong Kong, and mainland China. US authorities warn of tough penalties for evasion.
This development signals intensified global scrutiny on tech supply chains amid superpower tensions.
