Super Micro Co-Founder Yih-Shyan Liaw Resigns From Board After US Indictment Over Alleged Chip Smuggling to China

Mumbai, March 21: Yih-Shyan “Wally” Liaw, the billionaire co-founder of American technology giant Super Micro Computer, has resigned from the company’s board of directors following a federal indictment in the United States. Liaw, along with associates Ruei-Tsang Chang and Ting-Wei Sun, is accused of orchestrating a sophisticated scheme to smuggle restricted Nvidia artificial intelligence chips and high-end servers into China, violating strict US export regulations.

The resignation marks a significant shift for the Silicon Valley-based AI computing firm, which Liaw co-founded in 1993. Super Micro confirmed the departure in an official statement, noting that the board will now comprise eight members. To address the legal fallout, the company has immediately appointed DeAnna Luna, a veteran with over 20 years of experience in global trade and sanctions compliance, as the acting Chief Compliance Officer. Double Scam in Bengaluru: Businessman Duped of INR 1.5 Crore While Investing in Solar Energy, Loses INR 12.5 Lakh Again To Fake Legal Firm in Karnataka; 1 Arrested.

Details of the Yih-Shyan “Wally” Liaw Smuggling Indictment

US federal officials allege that the trio engaged in a complex operation to bypass export controls established in 2022, which prohibit the transfer of advanced AI technology to China. According to the indictment, the defendants attempted to conceal their activities from both US export authorities and the original manufacturers of the server equipment.

The prosecution claims the group utilised a network of intermediaries in Southeast Asia and Taiwan to mask the final destination of the hardware. To further evade detection, the indictment describes physical tampering with the machines, including the use of hair dryers to carefully remove serial numbers and labels from authentic servers. These labels were reportedly placed on "dummy" machines, while the high-tech equipment was rerouted to China.

Corporate Restructuring and Compliance

In response to the charges, Super Micro has prioritised its regulatory framework by elevating DeAnna Luna to a key leadership role. Luna joined the company in 2024 as Vice President of Global Trade and Sanctions Compliance after previously holding senior positions at Intel Corporation and Teledyne Technologies. Her appointment is intended to strengthen the firm's governance in highly regulated international markets.

Despite the high-profile departure of a co-founder, Super Micro stated that there would be no immediate changes to the board’s committee structure. The company continues to navigate a challenging period as US authorities intensify their scrutiny of tech firms involved in the global AI supply chain.

US-China Tech Tensions History

The legal action against Liaw and his associates comes amid a broader crackdown by the US government on the unauthorised flow of sensitive technology. Since 2022, Washington has implemented various tiers of export restrictions to prevent China from accessing advanced semiconductors, particularly those used in military applications and large-scale AI development. Who Is Basharat Ahmed Khan, Owner of ‘Car Lounge’ Arrested for Illegally Importing Luxury Cars Such As Rolls-Royce and Toyota Land Cruiser Into India?.

Nvidia’s high-performance chips are central to these restrictions due to their dominance in the AI processing market. While Super Micro itself has not been charged with wrongdoing as a corporate entity, the indictment of a founding member highlights the increasing legal risks faced by technology executives operating across international borders in the current geopolitical climate.

(The above story first appeared on LatestLY on Mar 21, 2026 04:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).