Four Chinese universities, including two linked to the People’s Liberation Army, bought servers from Super Micro Computer that allegedly used restricted AI chips over the past year, reports Reuters. Quoting the procurement data, the report says that authorities are examining how advanced AI hardware may have reached Chinese institutions despite US export restrictions. The US has banned export of advanced Nvidia chips to China since 2022. The development follows charges against three individuals, including the Super Micro Computer co-founder Yih-Shyan Liaw, who are accused of helping smuggle $2.5 billion worth of US AI technology to China. The company has said it was a victim of the scheme and was not named in the indictment. The report also noted that more Chinese institutions attempted to procure similar systems in recent months. Meanwhile, US lawmakers have urged stricter controls on exports of advanced AI chips to China and nearby regions.
Yih-Shyan Liaw resigns from the company’s board
Last week, the US Justice Department charged Yih-Shyan Liaw; a co-founder and director of Super Micro, Ruei-Tsang Chang; a sales manager, and Ting-Wei Sun; a contractor, in an indictment unsealed in federal court in Manhattan. Other defendants in the civil lawsuit are Chief Executive Charles Liang and Chief Financial Officer David Weigand. Following the indictment, Super Micro removed Yih-Shyan Liaw from its board of directors. “Following Mr. Liaw’s resignation, the Company’s Board comprises eight directors,” Super Micro said in an official press release adding “There are no changes to the Board’s committee structure.”The company then appointed DeAnna Luna as acting Chief Compliance Officer.
What Super Micro Computer says
“The conduct by these individuals alleged in the indictment is a contravention of the Company’s policies and compliance controls, including efforts to circumvent applicable export control laws and regulations,” according to a statement quoted by CNBC in its report. “Supermicro maintains a robust compliance program and is committed to full adherence to all applicable U.S. export and re-export control laws and regulations.”
