**Supermicro, a leading US-based server hardware manufacturer, plummeted 33% in stock value** after its co-founder and Chief Marketing Officer, Charles Liang, was charged with allegedly smuggling Nvidia graphics processing units (GPUs) to China. The charges were filed by the US Department of Justice on January 27, 2023. The alleged smuggling scheme allegedly occurred between 2018 and 2019, during which time Liang is accused of using Supermicro to import Nvidia GPUs into China without proper authorization. Nvidia GPUs are a critical component in many high-performance computing applications, including artificial intelligence, data analytics, and gaming. The US government has imposed strict export controls on these chips due to security concerns. According to the indictment, Liang and his co-conspirators allegedly used a variety of methods to evade US export controls, including mislabeling the Nvidia GPUs as "computer motherboards" and shipping them to a Chinese company called **Great Wall Semiconductor**. The indictment also alleges that Liang and his co-conspirators received payment for the smuggled GPUs in the form of cash and other benefits. The US Department of Justice charged Liang and his co-conspirators with conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit smuggling of goods. The indictment also alleges that Liang and his co-conspirators attempted to cover up their actions by deleting emails and other evidence. In a statement to the press, Nvidia said it was "aware of the allegations" and was "cooperating fully" with the US Department of Justice. Supermicro also issued a statement saying it was "cooperating with the investigation" and that it takes "export compliance very seriously." The indictment marks the latest development in a growing trend of high-profile cases involving the smuggling of sensitive technology to China. In 2020, the US Department of Justice charged a former Intel employee with smuggling Intel chips to China. The case has sparked concerns about the security risks posed by the unauthorized export of sensitive technology. As the investigation continues, it remains to be seen how the charges against Liang and his co-conspirators will impact Supermicro and the broader server hardware industry. The company's stock value has already taken a significant hit, and investors are likely to be watching the situation closely in the coming weeks and months.