Super Micro Probe Clears Management Over Alleged $2.5 Billion Nvidia Chip Diversion to China

Super Micro Computer has concluded an independent investigation into an alleged scheme involving the diversion of Nvidia-powered servers to China, saying it found no evidence that its current senior management knew about the operation.

The investigation was launched after three individuals associated with Super Micro were indicted in March over an alleged conspiracy to violate U.S. export-control laws. The company itself was not named as a defendant in the case.

Super Micro said its independent review examined the customer transactions identified in the federal indictment, along with other transactions involving restricted products.

According to the company, investigators found:

• No evidence that current senior management knew about the alleged diversion.
• No evidence that Super Micro directly sold export-controlled products to known restricted parties or locations.
• No evidence that the company’s previously issued financial statements were unreliable because of the alleged diversion.

The investigation was led by independent directors Scott Angel and Tally Liu, with outside legal and forensic accounting experts assisting with the review.

The investigation followed U.S. prosecutors’ allegations that Super Micro co-founder Yih-Shyan “Wally” Liaw and two others were involved in a scheme to divert roughly $2.5 billion worth of Nvidia-powered servers to China, potentially circumventing U.S. restrictions on the export of advanced AI hardware.

The accused individuals have pleaded not guilty, and the criminal case is still ongoing. While Super Micro says its current leadership was unaware of the alleged operation, the company has still taken disciplinary action against some employees.

Several workers in sales, technical support and business development were terminated for violating company policies or its code of conduct, according to Super Micro. The company has also adopted recommendations to strengthen its export-compliance procedures.

The investigation provides some relief for Super Micro and its investors, but it does not bring the wider legal matter to an end.

The U.S. criminal case remains active, while authorities in Taiwan are also investigating alleged illegal exports of advanced AI servers to China. On August 24, Taiwanese prosecutors indicted nine people, including employees linked to Nvidia and Super Micro, over a separate alleged export scheme involving advanced AI servers.

That means the broader questions surrounding the movement of restricted AI hardware to China are still unfolding.

For now, Super Micro’s internal investigation removes one major concern: the company says there is no evidence that its current top management knowingly participated in the alleged $2.5 billion diversion.

However, the company is tightening its export controls and has taken action against employees following the investigation.

As governments tighten restrictions on advanced AI chips, the Super Micro case highlights just how difficult—and important—it has become for technology companies to monitor where sensitive hardware ultimately ends up.