Taiwanese authorities seized fifty Supermicro servers and arrested three suspects for smuggling the hardware into China. The company says it worked closely with Taiwanese law enforcement to prevent illicit diversion of systems.
Company states it worked closely with Taiwanese law enforcement to prevent illicit diversion of systems.
Supermicro states that its employees were previously charged by U.S. prosecutors in connection to a separate $2.5 billion smuggling operation. Three Supermicro employees have been charged by U.S. officials in connection to an earlier smuggling operation.
The servers were reportedly routed through Japan before being sent to Hong Kong or China. The initial transaction followed a rigorous vetting and review process that exceeded applicable government requirements.
Supermicro stock dropped nearly 30% following the news of U.S. charges against its co-founder and employees. Neither Supermicro nor Nvidia have been charged despite the market reaction.
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