Super Micro probe finds senior management unaware of alleged Nvidia chip smuggling

Super Micro Computer completed an independent investigation into the alleged smuggling of Nvidia chips into China, concluding that the company’s current senior management had no knowledge of the purported scheme.

The probe began after US prosecutors charged Super Micro cofounder Yih Shyan “Wally” Liaw and two others in March with illegally diverting billions of dollars worth of Nvidia powered servers to China in violation of export control laws.

Prosecutors alleged the defendants sold the hardware to a Southeast Asian company and coordinated its eventual shipment to Chinese customers. Liaw subsequently resigned from Super Micro’s board. All three defendants have pleaded not guilty.

Super Micro appointed lead independent director Scott Angel and audit committee chair Tally Liu to oversee the investigation, working with law firm Munger Tolles & Olson and consultant AlixPartners.

The investigation found no evidence of direct sales to restricted parties and nothing suggesting that Super Micro’s previously issued financial statements were unreliable because of the potential diversion of restricted products, the company said Thursday.

Super Micro said it took several personnel actions across sales, technical support and business development, including terminating some employees for failing to follow company policies or its code of conduct.

The company’s independent directors also recommended additional measures to strengthen its export compliance program, which the board adopted in full.

Super Micro shares rose as much as 5.9% following the announcement before giving up the gains. The stock was down 0.4% at $36.43 at 11:01 a.m. in New York.

Nvidia’s most advanced chips are subject to US export restrictions because of their role in training and running advanced artificial intelligence models. Super Micro packages Nvidia chips into servers and is therefore also subject to those controls.

The March indictment alleged that the defendants attempted to avoid scrutiny from Super Micro and US government auditors by falsifying records and using dummy servers to conceal the movement of restricted hardware.

Bloomberg previously reported that Bangkok based OBON Corp., which is behind Thailand’s Siam AI project, was suspected of involvement in the alleged scheme. Siam AI has said it is committed to complying with applicable US export and reexport control laws.

Separately, Taiwanese prosecutors recently detained two Super Micro employees as part of an investigation into alleged Nvidia chip shipments to China. Two other employees were released on bail and restricted from leaving Taiwan.