The US government has charged three individuals for illegally exporting Nvidia-powered servers to China in violation of federal export laws, as authorities tighten control over advanced AI hardware leaving the country. The case centers on a multi-step scheme that allegedly moved billions of dollars worth of restricted technology through Southeast Asia before reaching China.
Prosecutors say Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun used fake orders and falsified documents to bypass export restrictions, while working with or alongside US-based server maker Super Micro Computer. The plan relied on third-party companies and logistics firms to disguise shipments and avoid internal compliance checks.
According to the US Attorney’s Office for the Southern District of New York, the group facilitated around $2.5 billion in server sales between 2024 and 2025 without proper export licenses. Authorities claim the servers contained Nvidia GPUs that fall under strict US export controls due to their role in training advanced artificial intelligence models.
How the scheme worked
Investigators say the group created fake purchase orders from Southeast Asian companies, which acted as intermediaries while the actual shipments moved to China. They also used repackaging tactics in Taiwan and staged dummy servers to pass inspections by compliance teams.
Prosecutors allege the defendants even misled auditors and US officials by showing fake equipment while the real hardware had already been redirected. In one instance, shipments worth more than $500 million were routed through the intermediary before reaching China.
Company response and legal action
Super Micro Computer said it has placed two employees on administrative leave and cut ties with the contractor involved, while confirming it was not named as a defendant in the case. The company also stated that the alleged actions violated its internal policies and compliance systems.
“Crimes involving sensitive technology must be met with swift action,” said US Attorney Jay Clayton. “Otherwise the law is meaningless.”
Authorities arrested Liaw and Sun, while Chang remains at large. The case adds to a growing number of incidents where high-demand AI chips have been diverted despite tightening US export controls.
Demand for Nvidia GPUs continues to rise as companies race to build more advanced AI systems, and this case shows how difficult it remains to fully enforce restrictions on critical technology exports.
