Super Micro Computer (SMCI) is back in an export-control headline after Reuters reported that a contractor tied to the company pleaded guilty in a scheme to smuggle servers packed with Nvidia AI chips into China, October 9. Ting-Wei “Willy” Sun entered the plea on Thursday, October 8, in Manhattan federal court.
Super Micro isn’t a defendant. Asked about the plea, the company pointed to earlier statements that the indictment hasn’t affected its business operations. It cut ties with Sun and the other two defendants earlier this year.
What Sun Admitted
- Four counts: including conspiracies to violate export controls, smuggle goods, defraud the US and obstruct justice.
- The cover-up: prosecutors call him the scheme’s “fixer,” who helped stage dummy servers in December 2025 and misled a Commerce Department inspector about servers already shipped to China.
- Still charged: co-founder Yih-Shyan “Wally” Liaw and former Taiwan sales manager Ruei-Tsang “Steven” Chang, indicted with Sun in March.
How Big Is $2.5 Billion for Super Micro?
Prosecutors say the group conspired to divert about $2.5 billion of AI servers starting around October 2023. Super Micro’s revenue climbed from $14.99 billion in fiscal 2024 to $21.97 billion in fiscal 2025, and reached $39.06 billion over the last twelve months.
Across fiscal 2024, fiscal 2025 and the last twelve months, the stretch the alleged scheme overlaps, Super Micro booked $76.02 billion. For scale, the approximately $2.5 billion in server purchases identified by prosecutors equals about 3.3% of that total, or 6.4% of LTM revenue alone.
That’s real money, and still a small slice.
Conclusion
The revenue comparison illustrates the transactions’ scale, but it does not establish Super Micro’s potential financial exposure. The harder part is who’s involved: the defendants include a co-founder who sat on its board, and the case’s first guilty plea includes obstruction of justice. Super Micro is not a defendant in this criminal case, although shareholders have separately sued the company over alleged disclosure failures related to the exports. Liaw’s proceedings could reveal further details, but they do not alone determine the company’s exposure.
Want to see how fast Super Micro’s revenue has grown alongside the AI server boom? Pull up the same chart on TIKR for free and track it against the next quarter’s results. Learn more here.
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