A significant legal case has emerged involving a technology executive and two associates accused of violating U.S. export laws to enhance China’s artificial intelligence capabilities. Yih-Shyan “Wally” Liaw, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun face serious charges tied to their alleged actions of diverting advanced computer servers and sophisticated U.S. technology to China. According to a news release from the Department of Justice, these individuals “defrauded the United States by diverting hundreds of servers with advanced artificial intelligence capabilities to Chinese customers.”
Liaw is the founder of Supermicro, which reportedly shipped nearly $2.5 billion worth of advanced AI technology to China. Notably, around $510 million of this involved servers assembled in the U.S. between April and May of 2025. The DOJ alleges that Liaw and Chang collaborated with a Southeast Asian company to falsely represent the end user of these servers, ultimately sending them to China. They created false documents to disguise the actual destination and even constructed dummy servers to mislead inspectors. This orchestration of deception saw workers captured on surveillance footage preparing those dummy servers for inspection.
John A. Eisenberg, Assistant Attorney General for National Security, elaborated on the indictment, detailing the strategies employed to circumvent U.S. export laws, highlighting the “false documents, staged dummy servers to mislead inspectors, and convoluted transshipment schemes.” This level of deceit underscores a critical violation that goes beyond mere commerce; it poses a considerable threat to national security.
The FBI emphasized the importance of controlling the export of sensitive technologies. Roman Rozhavsky, assistant director of the FBI’s Counterintelligence and Espionage Division, stated, “Controlling the export of sensitive U.S. artificial intelligence technology is essential to safeguarding our national security and defending the homeland.” The gravity of these accusations places the FBI on high alert, as they work tirelessly with various partners to ensure justice is served.
U.S. Attorney Jay Clayton for the Southern District of New York also remarked on the stakes at hand. He noted that these “diversion schemes” not only disrupt market integrity but also generate “billions of dollars in ill-gotten gains” posing a direct threat to national security. According to Clayton, this was accomplished through “a tangled web of lies, obfuscation, and concealment,” underlining the extensive lengths these individuals allegedly went to evade detection.
The three defendants now face multiple charges, including conspiring to violate the Export Controls Reform Act and conspiring to defraud the United States. If convicted, each could face up to 30 years in prison, a sobering potential consequence reflecting the severity of their actions.
Supermicro has reacted by placing Liaw and Chang on administrative leave, while severing ties with Sun, a contractor. The company has expressed full cooperation with the ongoing investigation, underscoring its commitment to adhering to U.S. export laws. In their statement, Supermicro highlighted that the conduct alleged in the indictment contravened their policies and compliance controls.
This case not only exemplifies the intricate web of international trade in technology but also illustrates the significant risks posed by breaches of export controls. With the stakes this high, the outcome of these charges could resonate throughout the tech industry and impact future international relations regarding trade and technology security.
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