Super Micro Computer (NASDAQ: SMCI) shares fell more than 11% to close at $26.99 on Thursday after reports emerged that the U.S. Department of Justice was investigating possible illegal shipments of American AI hardware to China linked to former Megaspeed executive Alice Huang.
Bloomberg reported that federal prosecutors in Manhattan are examining whether entities associated with Huang helped move Supermicro products into China in violation of U.S. export restrictions. Semafor separately reported that Justice Department investigations involving Supermicro and Singapore-based Megaspeed International are examining Huang’s potential role.
The reports did not establish wrongdoing by Supermicro or announce new charges against the company.
Thursday’s decline more than erased Wednesday’s 9.5% gain, which had lifted Supermicro shares to $30.43.
A Supermicro spokesperson told Semafor that Megaspeed had never been a Supermicro customer. The company also said it had fully cooperated with U.S. and Taiwanese officials and had voluntarily provided information to Singaporean authorities while responding to their requests.
Singapore Reports Limited Cooperation in Server Investigation
Separately, Singapore’s Ministry of Home Affairs on Thursday detailed its independent investigation into Huang’s former company, Megaspeed, and said Supermicro provided limited cooperation to authorities examining suspected server diversions.
Singaporean authorities launched an investigation in February 2025 into suspected false declarations involving server purchases and whether servers shipped through Singapore to Malaysia were subsequently diverted to other destinations.
The ministry said Singaporean officials raised concerns about Supermicro’s cooperation during a July 7, 2025, meeting with U.S. authorities. Singapore police had also repeatedly sought assistance from the Justice Department and FBI since September 2025 but received limited information or assistance regarding the company.
In February 2026, Singapore police found insufficient evidence to establish that Huang committed any offenses related to suspected inaccuracies in server-purchase declarations. However, police separately assessed that she had knowingly provided inaccurate information to downplay her role at Megaspeed.
Huang received a stern warning and was barred from re-entering Singapore. She left the country on February 26, 2026.
The ministry said investigations into Megaspeed and six other individuals remained ongoing.
Earlier U.S. Export-Control Case Involved Supermicro Servers
Supermicro had already disclosed federal export-control scrutiny related to an earlier case involving alleged diversions of its servers to China. Bloomberg said it remained unclear whether that case was connected to the newly reported inquiry involving Huang.
The company received a federal grand jury subpoena seeking information about the alleged diversion scheme and its export-compliance controls. Its latest quarterly filing said it continued to produce documents in response to the subpoena.
The subpoena relates to an indictment unsealed on March 19, 2026, charging Supermicro co-founder Yih-Shyan “Wally” Liaw and two other individuals with conspiring to divert advanced AI servers to China without required U.S. export licenses.
Federal prosecutors said a Southeast Asian company purchased servers worth about $2.5 billion from Supermicro in 2024 and 2025. Prosecutors alleged that the defendants used false documents, intermediaries, and shipments through Southeast Asia to conceal the equipment’s final destination. The Justice Department said at least $510 million worth of servers were diverted to China between late April and mid-May 2025 alone.
The DOJ did not charge Supermicro in that case. In its August 2026 annual report, Supermicro said authorities had not notified the company that it was a target of the previously disclosed investigations. Its latest quarterly filing separately stated that the Commerce Department’s Office of Export Enforcement had not informed the company that it was the target of any of its inquiries.
However, those disclosures do not establish whether federal prosecutors consider Supermicro a target of the newly reported investigation into Huang.
The August 2026 annual report also warned that if the DOJ launched an investigation into Supermicro, the company could face civil or criminal enforcement actions, financial penalties, or mandatory changes to its compliance controls.
Separately, Supermicro announced in August 2026 that an independent investigation found no evidence that current senior management knew about the alleged diversion scheme or that the company directly sold export-controlled products to known restricted parties or destinations. The company’s board adopted the investigation’s recommendations to strengthen export-compliance procedures.
