Super Micro Computer (NASDAQ: SMCI) shares rose 6% on Thursday after the server maker announced it had worked with Taiwanese authorities to stop an alleged diversion of its technology to China.
Police in Taiwan arrested three suspects and seized 50 servers during the operation, according to Supermicro.
The company said the systems were first sold to an authorized reseller before being routed through later buyers in the supply chain.
Supermicro said the original transaction went through a vetting process that met or exceeded government requirements at the time of sale.
The company acknowledged that the case illustrates how products can move beyond direct manufacturer oversight once they enter a broader resale network.
Supermicro said it remains focused on protecting its technology and intellectual property from unauthorized transfers.
The company added that it will continue working with law enforcement and officials in the U.S., Taiwan, and other jurisdictions to support export controls.
Supermicro also said it intends to improve supply-chain visibility as part of its broader compliance efforts going forward.
The stock’s 6% gain on Thursday reflected investor confidence that the company is taking active steps to address export control concerns in sensitive markets.
The arrest of three suspects and the seizure of dozens of servers signals a coordinated effort between Supermicro and Taiwanese law enforcement to enforce technology transfer restrictions.
