Federal prosecutors in Manhattan have unsealed indictments against three technology executives accused of orchestrating an elaborate scheme to illegally divert advanced Nvidia server systems to China, circumventing U.S. export control regulations. The alleged conspiracy, which operated between 2024 and 2025, involved sophisticated methods to conceal the unlawful transfer of cutting-edge computing technology.
Among those charged is Yih-Shyan ‘Wally’ Liaw, 71, a U.S. citizen serving as senior vice president and board member of Super Micro Computer Inc., who was apprehended Thursday in California alongside Ting-Wei ‘Willy’ Sun, 44, a company contractor. A third individual, Ruei-Tsang ‘Steven’ Chang, a Taiwan-based sales manager for the firm, remains at large according to law enforcement authorities.
The elaborate operation allegedly utilized fabricated documentation, staged equipment to deceive audit inspections, and employed intermediary corporations to obscure the true destination and clients of the sophisticated computing systems. Court documents reveal the conspirators directed executives at a Southeast Asian company to place orders exceeding $2.5 billion for servers manufactured by San Jose-based Super Micro Computer, with at least $510 million worth of systems ultimately being rerouted to Chinese entities after assembly in the United States.
This case emerges against the backdrop of intensifying technological competition between the United States and China, particularly in the field of artificial intelligence. Nvidia’s advanced processors have become critical components for AI data centers, positioning them as strategically significant technologies with potential national security implications. The U.S. government has maintained restrictions on exporting these high-performance chips to China, with both the Biden and Trump administrations implementing controls aimed at preserving American technological advantages.
In response to the allegations, Super Micro Computer issued a statement emphasizing that the indicted individuals’ actions violated company policies and compliance protocols. The firm noted its cooperative stance with governmental investigators and reaffirmed its commitment to adhering to export control regulations. Similarly, Nvidia released a statement underscoring strict compliance as a top priority and highlighting the effectiveness of enforcement mechanisms against unlawful technology diversion.
The case highlights the ongoing challenges in regulating the transfer of strategically sensitive technologies even as Nvidia’s market valuation has soared to unprecedented heights, recently reaching $4.3 trillion despite the absence of Chinese market sales in its revenue projections.