Supermicro fires several employees following investigation into $2.5 billion China AI chip smuggling — claims that senior management had no knowledge of illicit transactions
An independent investigation on Supermicro clears senior management from any wrong-doing and also says that its financial statements were still reliable, despite the alleged diversion of its restricted products. Nevertheless, some of its employees from sales, technical support, and business development departments were fired for failing to 'follow Company policies or the Company’s code of…
Following the arrest of Supermicro co-founder Yih-Shyan "Wally" Liaw and two others for alleged AI chip smuggling to China, the company released the results of its independent investigation. The investigation found that the company and its current senior executives were not involved in the alleged smuggling. Supermicro terminated several employees from the sales, technical support, and business development departments due to violations of the company's policies and code of conduct.
However, there was no indication that these employees were from the compliance department. The company has committed to improving its export compliance programs, adopting recommendations from the investigation and General Counsel and Chief Compliance Officer. Despite the company not being accused of any wrongdoing, the fact that an internal scheme may have been operating raises questions about the effectiveness of its compliance measures.
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