Super Micro contractor pleads guilty in alleged $2.5 billion AI-server smuggling scheme

The criminal case over an alleged $2.5 billion diversion of AI servers to China now includes a guilty plea covering export-control violations and obstruction. Ting-Wei “Willy” Sun, a former Super Micro Computer contractor, pleaded guilty to four counts in Manhattan federal court on October 8, 2026. Prosecutors describe him as the operation’s “fixer.”

Sun’s plea covers conspiracies to violate export controls, smuggle goods, defraud the United States and obstruct justice. He entered it as part of a deal with prosecutors, according to The Next Web, citing Bloomberg reporter Bob Van Voris. His lawyer declined to comment to Bloomberg.

Prosecutors charged Sun and two others in March. They allege the group conspired to divert about $2.5 billion in AI servers to China beginning around October 2023. That figure describes the scale of the alleged server-diversion scheme, rather than a fine or a measure of Super Micro’s financial exposure.

An indirect route—and servers staged for inspection

The alleged shipping route ran through a Southeast Asian company. Prosecutors say Sun and others sent servers containing Nvidia chips to that company, then diverted them to customers in China. US export rules barred the chips in those systems from sale to China.

The indictment also describes efforts to fool auditors about the hardware. Prosecutors allege that the group falsified records and assembled “dummy” servers, using a hair dryer to attach serial numbers. The alleged concealment therefore involved both documentation and physical equipment presented for inspection.

Sun’s alleged role in that cover-up is more specific: prosecutors say he helped stage dummy servers in December 2025. They also say he misled a Commerce Department inspector about servers that had already been shipped to China. Those accusations form the inspection-related account behind prosecutors’ description of him as a fixer.

A guilty plea beside a contested prosecution

Super Micro co-founder Yih-Shyan “Wally” Liaw remains charged and has pleaded not guilty. He has left the company’s board. Former Taiwan sales manager Ruei-Tsang “Steven” Chang, the third defendant, also remains charged and has not appeared in court.

The company said in August that its current senior leaders did not know about the alleged scheme and that it was working with investigators. That is Super Micro’s account of its leadership’s knowledge, distinct from prosecutors’ allegations about the defendants’ conduct.

Asked about Sun’s plea, Super Micro pointed to its earlier statements that the indictment had not affected business operations. The company also said it had cut ties with Sun and the other two defendants earlier in 2026.

Sun is scheduled to be sentenced in September 2027. For now, his plea is the new development in a prosecution whose other defendants occupy different positions: Liaw is contesting the charges, while Chang has yet to appear in court.