Supermicro has launched an independent investigation into the possible involvement of employees and partners in circumventing export regulations for advanced technology.Â
The investigation was prompted by a criminal case in the United States against three individuals with ties to the company, who are suspected of illegally shipping servers equipped with AI technology to China, according to Reuters.
According to the U.S. Department of Justice, the individuals involved allegedly set up a scheme in which servers from the United States were shipped via Taiwan to Southeast Asia. There, the systems were reportedly repackaged and then shipped to China without clear origin markings. This allegedly circumvented export restrictions applicable to sensitive technology.
Personnel consequences
Supermicro claims it is not a suspect in the case. However, the company did take action against the individuals involved. Two of them have been placed on leave, while a third person has been fired. One of the suspects, co-founder Yih Shyan Liaw, has since resigned from the board of directors.
U.S. authorities estimate that billions of dollars’ worth of AI-related technology was moved via this route. A significant portion of that is believed to have been shipped in a relatively short period. Furthermore, previous reports indicate that Chinese universities and research institutions gained access to servers containing chips subject to trade restrictions.
Within the company, the focus is now not only on the specific case but also more broadly on compliance with international trade rules. Two independent board members are leading the investigation and reporting to the other independent members of the board of directors. External parties have been engaged to support both legal and financial forensic investigations.
A timeline for completing the investigation has not yet been established. The company thus appears to want to take the time to thoroughly analyze whether internal processes were deficient and whether additional measures are needed to mitigate future risks.
Also read: Supermicro servers in the hands of Chinese universities with ties to the military