US officials arrested a co-founder of AI server manufacturer Super Micro for allegedly helping smuggle $2.5 billion worth of high-end semiconductors to China.
Prosecutors allege that Wally Liaw trafficked advanced Nvidia chips to Chinese firms, allowing them to skirt US restrictions: Washington has banned the export of Nvidia’s most advanced chips to China as it looks to stymie Beijing’s progress in the AI race.
But the California-based tech giant has won concessions from the Trump administration to export less advanced semiconductors, and its CEO vowed this week to invest more to serve the Chinese market, which provided around a quarter of the firm’s revenue before the sanctions kicked in.
