{"id":95440,"date":"2026-03-20T18:07:59","date_gmt":"2026-03-20T15:07:59","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=95440"},"modified":"2026-03-20T18:10:30","modified_gmt":"2026-03-20T15:10:30","slug":"us-uncovers-2-5-billion-ai-chip-smuggling-scheme-to-china","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/us-uncovers-2-5-billion-ai-chip-smuggling-scheme-to-china\/","title":{"rendered":"US Uncovers $2.5 Billion AI Chip Smuggling Scheme to China"},"content":{"rendered":"

US authorities have detained Yi-Xiang “Wally” Liao, co-founder of Super Micro Computer. He has been charged with smuggling AI chips to China worth $2.5 billion, according to a press release<\/a> from the Department of Justice.<\/p>\n

Other accused individuals include Rui-Zang “Steven” Chang, general manager of Super Micro’s Taiwan office (currently wanted), and third-party broker Ting-Wei “Willy” Sun (detained).<\/p>\n

According to the investigation, the suspects misled inspectors, forged documents, and used complex transit shipping schemes involving an intermediary company to conceal the true destination of the AI chips.<\/p>\n

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“Such schemes generate billions of dollars in illegal profits and pose a direct threat to US national security,” stated Jay Clayton, prosecutor for the Southern District of New York.<\/p>\n<\/blockquote>\n

Authorities claim that the accused and others conspired to systematically redirect servers from the American manufacturer with specific GPU<\/span> to China without a license from the Department of Commerce. The scheme operated as follows:<\/p>\n

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  1. Liao and Chang instructed executives of a company in Southeast Asia to place orders with the US manufacturer for servers.<\/li>\n
  2. The systems were assembled in the US, then shipped to facilities in Taiwan, and from there to the company involved in the case in other Southeast Asian countries.<\/li>\n
  3. The firm then repackaged the servers in unmarked boxes to conceal their contents before shipping them to final destinations in China.<\/li>\n<\/ol>\n

    Between 2024 and 2025, the company purchased equipment worth $2.5 billion from the US manufacturer.<\/p>\n

    Authorities reported that the accused and their accomplices took extensive measures to conceal the scheme. They manufactured thousands of fake servers to deceive American compliance auditors.<\/p>\n

    Surveillance footage shows Sun personally overseeing the process of replacing serial number stickers, with employees using a hairdryer for the task.<\/p>\n

    \"image\"
    Sun above, one of the scheme participants below. Source: US Department of Justice Public Affairs Office.<\/figcaption><\/figure>\n

    Liao, Chang, and Sun are charged with three counts of conspiracy to:<\/p>\n