Super Micro Associates Charged With Smuggling Nvidia Chips to China

Three people connected to Super Micro Computer — including a co-founder — have been charged by federal prosecutors with smuggling Nvidia chips to China. The U.S. Attorney's Office for the Southern District of New York brought the charges against associates of what court documents describe as an unidentified U.S. server maker.

The allegations center on illegal export of controlled semiconductor technology to China, violating U.S. restrictions designed to keep advanced AI-capable chips out of Chinese hands.

SMCI stock cratered more than 9% in after-hours trading on the news. The company has already weathered a turbulent stretch, and criminal charges tied to chip smuggling add a whole new layer of legal risk.

The case underscores how aggressively federal authorities are pursuing enforcement of chip export controls — and that even major players in the server supply chain aren't immune from scrutiny.