Super Micro shares plunge as US charges co-founder, two more for smuggling AI chips to China

Core Viewpoint - Super Micro's shares plummeted 33% following charges against its co-founder and two others for allegedly smuggling billions of dollars worth of AI technology to China, although the company itself was not named as a defendant in the case [1][4]. Group 1: Legal Issues - The US Justice Department charged Super Micro co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun with smuggling US-made servers through Taiwan to Southeast Asia, where they were repackaged and sent to China [4]. - The alleged scheme involved moving at least $2.5 billion in US AI technology, with over half a billion dollars shipped between April and mid-May 2025 [5]. Group 2: Financial Impact - Analysts at Melius Research indicated that Super Micro's revenue could face "enormous" risks as customers reassess their supplier exposure, with Dell being seen as the primary beneficiary due to its scale and closer ties with Nvidia [2]. - Super Micro's valuation peaked at $67 billion in 2024 due to soaring demand for AI chips, but has since declined due to margin pressures and allegations from a short-seller [7]. Group 3: Company Response - In response to the charges, Super Micro has placed the implicated employees on leave and terminated its relationship with the contractor involved [5]. - The company confirmed its cooperation with investigators and clarified that it was not named as a defendant in the legal complaint [1].