Authorities in the Southern District of New York have indicted three individuals for smuggling NVIDIA graphics processing units to China, breaching the Export Control Reform Act. These components from NVIDIA play a vital role in developing and operating advanced artificial intelligence systems, prompting the United States to impose restrictions on exports and establish revenue-sharing arrangements with the chipmaker.
The accused, identified as Yih-Shyan 'Wally' Liaw, Ruei-Tsang 'Steven' Chang, and Ting-Wei 'Willy' Sun, consist of two staff members and one freelancer associated with the American technology firm Super Micro Computer. Prosecutors allege they evaded restrictions through an elaborate process that included fabricating purchase requests for server units containing NVIDIA hardware from firms in Southeast Asia, which were covertly redirected to China. This operation entailed compensating a shipping firm to repack the equipment in Taiwan, preparing decoy units for review by the company's oversight personnel, and altering documentation to conceal the true destinations from their employer.
According to the Department of Justice, the trio enabled the unauthorized acquisition of server systems valued at $2.5 billion from 2024 to 2025, contravening American export statutes. Super Micro Computer faces no charges in the federal filing, though reports from CNBC indicate the scandal has affected its share prices. In a Thursday disclosure, the firm stated it is severing ties with the implicated parties. 'The charged individuals include Yih-Shyan "Wally" Liaw, who serves as Senior Vice President of Business Development and sits on the Company's Board of Directors; Ruei-Tsang "Steven" Chang, a sales manager based in Taiwan; and Ting-Wei "Willy" Sun, a contractor,' according to the statement. 'Supermicro has suspended the two staff members pending review and ended its engagement with the contractor right away.'
Efforts to illicitly transport NVIDIA hardware beyond U.S. borders have occurred before and are expected to persist. Sources indicate that $1 billion in NVIDIA artificial intelligence processors were unlawfully traded within three months following stricter export measures under the Trump administration, and in December 2025, officials in Texas confiscated over $50 million in such units destined for China. Persistent interest in artificial intelligence will continue to drive the need for supporting technology.