The biggest heist of the US-China Chip War: 3 Supermicro employees charged
with conspiracy to smuggle restricted Nvidia H100, H200, and B200 chips to China dummy boxes, fake labels, and a pass-through company enabled the $2.5 billion scheme

Date:
Fri, 20 Mar 2026 16:39:57 +0000

Description:
Three men are facing charges of conspiracy to smuggle restricted GPUs to
China.

FULL STORY
Three men have been charged for exporting restricted AI chips to China
The men were employees of Super Micro Computer Inc.
The scheme amassed $2.5 billion in sales, circumventing restrictions on power AI GPUs

A federal
investigation has been launched after the US Department of Justice charged three individuals for allegedly smuggling restricted Nvidia AI chips to
China.

The three men were not named in court documents , however a statement
released by Super Micro Computer Inc. identified those involved. The
smuggling allegedly occurred between 2024 and 2025, with billions of dollars worth of computer servers containing advanced Nvidia making the journey to China.

The masterminds behind the $2.5 billion scheme -- Of the
three men charged, two have been arrested. Yih-Shyan Wally Liaw, a senior
vice president and board member of Supermicro, was arrested in California, while Ting-Wei Willy Sun, a Supermicro contractor based in Taiwan, was also taken into custody. The third man, Ruei-Tsang Steven Chang, worked for Supermicros Taiwan office and is currently a fugitive.

Supermicro issued a statement on the arrest of the three men. The conduct by these individuals alleged in the indictment is a contravention of the
Companys policies and compliance controls, including efforts to circumvent applicable export control laws and regulations, the company said. Supermicro maintains a robust compliance program and is committed to full adherence to
all applicable U.S. export and re-export control laws and regulations.

The smuggling scheme allegedly amassed $2.5 billion in sales, with the trio managing to divert over $510 million worth of Supermicro servers to China.
The servers were allegedly ordered by a Southeast Asian pass-through company (noted in the indictment as Company-1) in order to appear as legitimate transactions, before being repackaged and shipped to China. Supplying China with cutting edge tech The Supermicro servers largely contained Nvidia H100
and H200 Tensor Core GPUs, which are specifically designed to train and
handle large language models (LLMs).

The indictment further states that in order to keep China supplied with the latest technologies, Liaw allegedly pushed for Company-1 to place larger orders, including servers containing Nvidias B200 - one of the most advanced GPUs at the time. The height of the US-China Chip War The US has had restrictions on the types of GPUs companies are allowed to export to China since October 2022. The primary purpose of these restrictions was to maintain US superiority in AI development, while simultaneously preventing China from building powerful models that could be used for decryption, autonomous
weapons systems, and cyberwarfare.

In order to police the enforcement of these restrictions, physical
inspections took place to ensure servers werent being smuggled into China. However, the three individuals allegedly organized staged dummy servers packaged with Supermicros labels and boxes, while the original contents of those same boxes were already being shipped to China.

Circumventing the restrictions -- As this case would attest,
export restrictions are only as good as their physical inspections.
While the indictment doesnt explain the process of a physical inspection, it does state that an audit took place in August of 2025. However, the
indictment further states that the individual tasked with conducting the
audit was allegedly off-site enjoying entertainment paid for by Company-1.

In order to complete the audit, Sun allegedly sent photos and videos of the dummy servers, complete with their fake labels, to the auditor. The US Bureau of Industry and Security (BIS) later informed Supermicro that Company-1 was diverting its orders to China, and a second audit was scheduled. The second audit again involved dummy servers, and resulted in BIS placing a hold on Company-1s shipments.

Since January 2026, the restrictions on the export of H200 chips to China has been lifted , but there are requirements that customers ensure sufficient security procedures, with approved exports being subjected to a 25% tax. However, B200 chips remain strictly banned.

Link to news story: https://www.techradar.com/pro/security/the-biggest-heist-of-the-us-china-chip- war-3-supermicro-employees-charged-with-conspiracy-to-smuggle-restricted-nvidi a-h100-h200-and-b200-chips-to-china-dummy-boxes-fake-labels-and-a-pass-through -company-enabled-the-usd2-5-billion-scheme

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