Federal prosecutors have charged three individuals linked to Super Micro Computer Inc. in an alleged $2.5 billion scheme to illegally export U.S. artificial intelligence technology to China, according to an indictment unsealed this week.

Authorities say the defendants diverted massive quantities of AI servers, including roughly $510 million worth in just a few weeks in 2025, through a complex network of shell companies, falsified documents, and deceptive shipping practices designed to evade U.S. export controls.

The charged individuals include Yih-Shyan Liaw, a U.S. citizen and former senior executive; Ting-Wei Sun, a Taiwan-based contractor; and Ruei-Tsang Chang, who remains at large.

According to prosecutors, the group orchestrated a scheme in which AI servers equipped with restricted GPUs were ordered through a Southeast Asia-based intermediary company to mask their true destination. The equipment was assembled in the United States, shipped abroad, repackaged in unmarked boxes, and ultimately sent to China.

To further conceal the operation, investigators say the defendants created false paperwork identifying the intermediary company as the end user. They also allegedly staged thousands of nonfunctional “dummy” servers to mislead compliance inspectors.

In one instance cited in the indictment, the defendants allegedly used a hair dryer to remove and reapply labels and serial number stickers on server equipment ahead of a U.S. Department of Commerce inspection, repackaging the dummy units to appear legitimate.

U.S. Attorney Jay Clayton described the operation as a “systematic scheme” built on deception to generate billions in illicit revenue while undermining U.S. law. Officials say the case highlights the national security risks tied to the unauthorized export of advanced AI technologies.

The defendants face multiple charges, including conspiracy to violate the Export Control Reform Act, which carries a potential 20-year prison sentence, as well as conspiracy to smuggle goods and defraud the United States.

Supermicro said it has been notified of the charges, placed the employees involved on administrative leave, and terminated its relationship with the contractor, adding that the alleged conduct violates company policy and compliance standards.