Super Micro contractor pleads guilty in Nvidia AI chip rerouting scheme

A former contractor for Super Micro Computer Inc. has admitted his part in a scheme to move Nvidia-powered AI servers into China. Ting-Wei ‘Willy’ Sun pleaded guilty on October 9, 2026, in a New York federal court to charges tied to violations of US export controls.

How the alleged scheme worked

The indictment lays out what prosecutors describe as a conspiracy spanning several years. At its center: approximately $2.5 billion worth of Supermicro servers allegedly sold to a company in Southeast Asia.

That buyer was, according to the indictment, less of a final destination and more of a layover. Servers were allegedly rerouted through the Southeast Asian entity and on to customers in China.

The pace picked up sharply at one point. Prosecutors allege that more than $510 million worth of servers went to Chinese customers in a three-week window running from late April to mid-May 2025.

The methods described in the case are decidedly low-tech for a high-tech crime. Servers were allegedly repackaged in unmarked boxes, and false paperwork was allegedly created to mislead US authorities about where the equipment was really headed.

The hardware at issue is not ordinary office kit. The concerns center on advanced AI chips, including Nvidia’s H200 and B200 models, which sit squarely in the category of technology Washington has been trying to keep out of Chinese hands.

Who else is caught up in the case

Sun is not the only name in the indictment. The investigation, which has been running since March 2026, has also implicated Supermicro co-founder Yih-Shyan ‘Wally’ Liaw.

Liaw has been arrested. Taiwan sales manager Ruei-Tsang ‘Steven’ Chang, also named in the case, remains at large.

In a related action, Earthmade Computer CEO Greg Lui was recently indicted for allegedly smuggling an additional $300 million in Nvidia chips into China through similar routes.

Background: a long-running crackdown

The US has been pursuing export control violations involving AI chips bound for China since 2022. The goal has been to slow China’s access to the advanced processors that power cutting-edge AI systems.

Supermicro sits in a central spot in that supply chain. The company builds the servers that house these chips, which makes it a natural target for anyone trying to obtain the hardware through indirect channels.

The market noticed when the charges landed. Supermicro’s stock fell by about 30-33% following the March indictment.

What this means

For Supermicro, the plea keeps the case in the headlines at a time when the company would surely prefer to talk about anything else. The roughly one-third drop in its share price after the March indictment shows how quickly investor confidence can erode when compliance questions reach a company’s leadership.

What to watch next: whether Sun’s plea leads to cooperation that affects the cases against Liaw and others, whether Chang is located, and how the Earthmade Computer prosecution develops alongside it.