Super Micro Computer co-founder Liao Yixian was indicted in New York on suspicion of conspiracy to illegally transfer billions of dollars worth of AI technology to China. After the news came out, AMD's stock price fell 11.85% to $27.14 after the market closed.
U.S. prosecutors accused Liao of violating U.S. export controls by shipping high-performance computer servers assembled in the United States and equipped with NVIDIA GPUs to China. They believe that Liao and other company personnel sold these AI technologies through a Southeast Asian company and knew that the technology would eventually be transferred to China. Liao Yixian was arrested on Thursday (19th).
Super Micro Computer issued a statement stating that it had placed Liao Yixian and Ruei-Tsang Chang on administrative leave and terminated its cooperative relationship with Ting-Wei Sun. The company emphasized that it has been cooperating with the government investigation and believed that the individual behaviors mentioned in the indictment "violated the company's policies and compliance controls, including evading applicable export control laws and regulations." It also emphasized that the company "has a comprehensive compliance system and is committed to fully complying with all applicable U.S. export and re-export control laws and regulations."
NVIDIA also issued a statement saying that strict compliance with compliance regulations is the company's top priority. As export control regulations expand, the company continues to work closely with customers and governments, emphasizing that it will not service products illegally shipped to China.
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