Super Micro Computer (NASDAQ: SMCI) is back under export-control scrutiny after a contractor tied to the company pleaded guilty in a scheme to smuggle Nvidia AI chip-packed servers into China.
Ting-Wei “Willy” Sun entered the plea on October 8 in Manhattan federal court, admitting to four counts including conspiracies to violate export controls, smuggle goods, defraud the United States, and obstruct justice.
Prosecutors describe Sun as the scheme’s “fixer,” a role that included helping to stage dummy servers in December 2025 and misleading a Commerce Department inspector about servers already shipped to China.
Super Micro is not a defendant in the criminal case, and the company pointed to earlier statements that the indictment has not affected its business operations.
The company cut ties with Sun and the two other defendants earlier this year, distancing itself from the individuals at the center of the federal investigation.
Still facing charges are co-founder Yih-Shyan “Wally” Liaw and former Taiwan sales manager Ruei-Tsang “Steven” Chang, both of whom were indicted alongside Sun in March.
Prosecutors allege that the group conspired to divert approximately $2.5 billion worth of AI servers beginning around October 2023, a period that overlaps with Super Micro’s rapid revenue expansion.
Super Micro’s revenue climbed from $14.99 billion in fiscal 2024 to $21.97 billion in fiscal 2025, reaching $39.06 billion over the last twelve months, reflecting explosive demand for AI infrastructure.
Across fiscal 2024, fiscal 2025, and the last twelve months combined, Super Micro booked $76.02 billion in revenue, against which the alleged $2.5 billion in diverted servers represents roughly 3.3% of that total.
While that figure amounts to approximately 6.4% of trailing twelve-month revenue, it remains a relatively small slice of the company’s overall business volume during the period in question.
The more significant dimension of the case may be who is involved rather than the dollar figure itself, given that the defendants include a company co-founder who sat on its board.
The guilty plea also includes an obstruction of justice count, which adds legal weight to the case and could complicate how the broader investigation unfolds as Liaw’s proceedings continue.
Shareholders have separately sued Super Micro over alleged disclosure failures related to the exports, meaning the company faces civil exposure even as it avoids criminal defendant status.
The outcome of Liaw’s case could surface additional details about the alleged scheme, though those proceedings alone will not determine Super Micro’s financial or legal exposure going forward.
