Super Micro begins independent probe after criminal case against co‑founder, others
April 7 (Reuters) – Super Micro said on Tuesday it had launched an independent investigation into the indictment of three people affiliated with the company on charges of export control violations.
It was also stated that the San Jose, California-based company also initiated an internal review of its global trade compliance program.
The U.S. Department of Justice last month charged co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang and contractor Ting-Wei Sun with running a scheme to route U.S.-made servers to Southeast Asia via Taiwan.
The products were allegedly repackaged in unmarked boxes in Southeast Asia and smuggled into China.
Super Micro, which was not named as a defendant in the lawsuit, placed Liaw and Chang on leave and terminated Sun’s employment after becoming aware of the accusations.
Liaw resigned from the company’s board of directors in March following the indictment.
The three allegedly carried at least $2.5 billion in U.S. artificial intelligence technology, the department said; this includes more than half a billion dollars shipped between April and mid-May last year.
Four Chinese universities, including two affiliated with the People’s Liberation Army, purchased Super Micro servers with limited artificial intelligence chips last year, Reuters reported last month, citing purchasing data.
According to Reuters reporting in 2024, Chinese universities and research institutes had previously purchased limited chips in servers produced by Super Micro and other manufacturers.
Super Micro said the investigation was led by two independent board members: Independent Director Scott Angel and Audit Committee Chair Tally Liu.
The findings will be reported to the board’s remaining independent directors, who appointed the law firm Munger, Tolles & Olson to conduct the investigation. Consulting firm AlixPartners has been engaged to provide forensic accounting expertise.
The independent directors did not set a timeline for completion of the investigation. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shreya Biswas)
