tech
Super Micro shares tank 33% after employees charged with smuggling Nvidia chips to China
The U.S. government has been trying to crack down on illegal shipments of top-tier Nvidia artificial intelligence chips to China.
TL;DR
- Associates of an unidentified U.S. server maker, including Super Micro employees, have been charged with illegally diverting billions in Nvidia-powered servers to China.
- The charges allege violations of the Export Control Reform Act, aimed at protecting U.S. national security and foreign policy interests.
- A Southeast Asian company acted as a middleman, using fake paperwork and logistics firms to conceal the servers' destination.
- The defendants allegedly used 'dummy' servers to deceive Super Micro's compliance team and a U.S. export control officer.
- The scheme reportedly generated around $2.5 billion in sales since 2024, with servers valued at $510 million shipped between late April and mid-May 2025.
- Super Micro has placed the accused employees on leave and ended its relationship with a contractor, stating the conduct contravenes company policies.
- Super Micro shares fell 33% on Friday after the indictment was unsealed.