Three people have been charged with illegally exporting NVIDIA GPUs to China
The US Attorney's Office for the Southern District of New York has charged three people with illegally exporting NVIDIA GPUs to China in violation of the Export Control Reform Act. NVIDIA's chips have become a critical component in the rush to train and run increasingly complex artificial intelligence models, one the US has sought to manipulate with export controls and profit-sharing schemes with NVIDIA.The three people, Yih-Shyan "Wally" Liaw, Ruei-Tsang "Steven" Chang and Ting-Wei "Willy" Sun, two employees and one contractor working for US IT company Super Micro Computer, allegedly circumvented export control laws via a multi-step scheme that involved creating fake orders for servers with NVIDIA chips from Southeast Asian companies, that were then secretly sent to China. The plan involved paying a logistics company to repackage the servers in Taiwan, staging dummy servers to be inspected by Super Micro Computer's compliance team and falsifying records so Liaw, Chang and Sun's employer was unaware where the servers were actually being sent.The DOJ claims Liaw, Chang and Sun facilitated the illegal purchase of $2.5 billion worth of servers between 2024 and 2025 in direct violation of US export laws. Super Micro Computer is not named as a defendant in the US Attorney's indictment, but the company's stock price has been impacted by the scheme, CNBC writes. In a statement released on Thursday, Super Micro Computer announced that it's distancing itself from Liaw, Chang and Sun. "The individuals charged are Yih-Shyan "Wally" Liaw, Senior Vice President of Business Development and a member of the Company's Board of Directors; Ruei-Tsang "Steven" Chang, a sales manager in Taiwan; and Ting-Wei "Willy" Sun, a contractor," the company writes. "Supermicro has placed the two employees on administrative leave and terminated its relationship with the contractor, effective immediately."This isn't the first time people have attempted to illegally smuggle NVIDIA's products out of the US, and it likely won't be the last time. Reportedly $1 billion worth of NVIDIA's AI chips were illegally sold in the three months after the Trump administration tightened export controls, and back in December 2025, Texas authorities seized more than $50 million worth of NVIDIA GPUs bound for China. As long as there's demand for AI, there'll be demand for the hardware that makes it possible.This article originally appeared on Engadget at https://www.engadget.com/ai/three-people-have-been-charged-with-illegally-exporting-nvidia-gpus-to-china-184928430.html?src=rss