United States has arrested two individuals, including Super Micro co-founder, for allegedly trying to send advanced artificial intelligence (AI) technology to China, according to federal prosecutors.
The Department of Justice (DOJ) has charged three individuals Yih-Shyan Liaw, a U.S. citizen and co-founder of SMCI, Ting-Wei Sun and Ruei-Tsang Chang, citizens of Taiwan, for allegedly conspiring to “divert high performance computer servers” assembled in the U.S. and integrating U.S. AI technology to China.
The prosecutors alleged that the trio were trying to sell billions of dollars’ worth of servers integrating sensitive, controlled graphic processing units to buyers in China, in violation of U.S. export control laws
While Liaw and Sun were arrested in California, Chang remains at large, informed the authorities.
“The indictment unsealed today details alleged efforts to evade U.S. export laws through false documents, staged dummy servers to mislead inspectors, and convoluted transshipment schemes, in order to obfuscate the true destination of restricted AI technology—China,” said John A. Eisenberg, Assistant Attorney General for National Security.
Prosecutors claim the three men were part of a large scheme to secretly export high-performance computer servers built in the U.S. These servers were equipped with advanced AI chips, which are subject to restrictions under U.S. export regulations due to concerns regarding national security.
According to the indictment, the group employed various tactics to conceal their actions. They purportedly fabricated documents to indicate that the servers were being sold to a company in Southeast Asia, while the actual destination was China. The servers were first shipped to Taiwan and then rerouted.
Investigators also say the accused used “dummy” servers—fake machines—to trick auditors. These replicas were displayed during inspections to make it appear that the equipment was still in approved locations, while the real servers had already been sent to China.
The operation was reportedly massive. Between 2024 and 2025, approximately $2.5 billion worth of servers were procured, with reports indicating that over $500 million worth was swiftly redirected to China. U.S. officials have raised concerns that such transactions could jeopardize national security due to the potential use of advanced AI technology for military or strategic purposes. To prevent unauthorized transfer of sensitive technologies, strict export controls have been established. If convicted, defendants could face up to 20 years in prison for the most serious charge, along with additional penalties for smuggling and fraud. Authorities emphasize that these charges are allegations, and the accused are presumed innocent until proven guilty in court.
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