US prosecutors in the Southern District of New York have charged 3 people associated with Super Micro Computer Inc. This is in connection with what is being called the biggest AI chip smuggling case since the US imposed new export rules on high-tech semiconductors to China back in 2022. 

The indictment involves Yih-Shyan “Wally” Liaw, founder of Super Micro; Ruei-Tsang “Steven” Chang, a sales manager in Taiwan; and Ting-Wei “Willy” Sun, an external consultant.

According to the indictment, the three were engaged with an unnamed intermediary from Southeast Asia, reported to be OBON Corp, a Thailand-based firm, and a series of third-party brokers in funneling restricted US servers carrying Nvidia chips via Taiwan and Thailand, until they were finally packaged in unlabeled boxes and sent to China.

US prosecutors go after AI’s biggest smuggling ring

According to reports, more than $500 million in servers were reportedly transported as part of the larger $2.5 billion deal. This was uncovered by the Bureau of Industry and Security under the US Department of Commerce.

Alibaba Group Holding Ltd. is reported to be among the many Chinese end users of servers shipped through OBON. Alibaba Group Holding Ltd. responded by denying all allegations: “Alibaba does not have a business relationship with Super Micro, OBON, or other third-party brokers named in the indictment. We have nothing to do with the alleged illegal acts. We have not and will not use any Nvidia restricted chips in our data centers.”

Super Micro itself has not been accused of anything at all. They have launched an internal investigation, placed their co-founder, Mr. Liaw, on administrative leave (Mr. Liaw later left the board), and assured their stakeholders that the company’s CEO, Charles Liang, was “personally shocked and saddened by the situation.” 

On their earnings call, Mr. Liang went further to say, “None of us, other than those mentioned in the DOJ indictment, were involved in the actions described in the press.”

The Nvidia spokesman maintained that it was crucial for the partner organizations to be compliant. He said: “We are already seeing convictions for those who attempt smuggling as a result of our diligence process […] we will continue to collaborate with the government to ensure compliance and help build the infrastructure for AI worldwide.”

As of May 8, 2026, no legal action has been brought against either OBON Corp or Alibaba by the US. The BIS embargo on shipping to Thailand still stands, while the Justice Department and the Department of Commerce declined further comment. 

Thai’s OBON Corp emerges as key Thai intermediary in national AI push

OBON Corp., which operates out of Bangkok, was listed as “Company-1” in the US indictment. In 2024, OBON’s profile increased significantly when the company announced it had established Siam AI, Thailand’s sovereign cloud champion.

OBON became one of Super Micro’s top customers, ranking eleventh in profitability at one point. According to trade data studied by Cryptopolitan, there were significant ups and downs in the importation of OBON’s AI server under the specified HS code: first, there was a decrease due to the audit and Super Micro’s halt in shipping in October 2024.

They then resumed and spiked sharply in April and May 2025, which is exactly the time when the smuggling occurred, according to the allegations. As part of the Super Micro Audit team’s visit to Thailand in August 2025, OBON alleged that it had paid off-site expenses for one of the auditors. 

The founder of Siam AI and currently its CEO, Ratanaphon Wongnapachant—the nephew of Thaksin Shinawatra, former prime minister of Thailand—was also the CEO of OBON until at least May 2024. During a phone interview this week, Wongnapachant said he had stepped down from OBON at the same time he founded Siam AI. 

He said that the sovereign cloud company “has nothing to do” with the allegations made by the US authorities. Siam AI bought GPUs solely for its own use and became the first Nvidia Cloud Partner in Thailand.

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