Super Micro-Linked Broker Pleads Guilty in Nvidia Chip Smuggling

Fake servers and hair dryers

According to the Justice Department's investigation, the defendants shipped servers to a Southeast Asian company listed as the buyer, although the real destination was China. They allegedly prepared false paperwork and moved the machines in unmarked boxes.

Investigators also say thousands of dummy servers were built to get past inspections. Hair dryers were reportedly used to peel off labels and serial numbers, which were then attached to the replicas. Inspectors could therefore find seemingly genuine machines after the originals had already left for China. Surveillance cameras recorded part of the preparations.

Charges and what comes next

Sun pleaded guilty to four counts: violating export controls, smuggling, defrauding the US government and obstruction of justice. His sentencing is scheduled for September 8, 2027. Liaw maintains his innocence.

Super Micro, which makes the servers used in the scheme, is not named as a defendant for now. The company says it is cooperating with the authorities to keep its equipment from reaching restricted markets.

The case shows how closely Washington is watching the flow of AI hardware to China, and how far the alleged scheme went to evade checks on high-value servers.