US DOJ Charges Three in $2.5 Billion Nvidia AI Chip Smuggling Ring

Three individuals linked to a US tech supplier have been indicted for allegedly smuggling restricted Nvidia AI chips to China. Prosecutors say they falsified documents and used dummy equipment to evade export controls. Those charged include US citizen Yih-Shyan Wally Liaw and Taiwanese nationals Ting-Wei Willy Sun and Ruei-Tsang Steven Chang, who remains at large. Liaw co-founded Super Micro Computer, which confirms the ties but says it isn’t a defendant and is fully cooperating. Authorities allege the group worked with a Southeast Asia–based front to place server orders, repackaged genuine units, and passed audits with thousands of dummy servers. Estimates put the value of diverted equipment at around $2.5 billion. The case highlights growing US-China tensions over advanced AI technology and underscores the strict enforcement of export controls on sensitive semiconductors.

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