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Jen-Hsun Huang Resignation scandal spreadsuper micro ” rel=’237211’>supermicro (Supermicro). There is currently no indication that the Justice Department intends to bring criminal charges against Huida or Huang.
Affected by this news, Supermicro’s share price closed down 11.3% on Thursday.
The investigation into Huang Le’s related companies was led by a Manhattan federal prosecutor, Bloomberg reported, citing people familiar with the matter. Huang Le was a former director of Singapore data center operator MegaSpeed and is suspected of being a Chinese intelligence agent. Huang Jen-hsun admitted to having an extramarital affair with him before leaving office.
Supermicro issued a statement Thursday emphasizing that “MegaSpeed is not and has never been a customer of Supermicro.” It also said it has fully cooperated with US and Taiwan authorities’ investigations, actively providing information and responding to all requests made by Singapore authorities to date.
Supermicro said it has a strong legal compliance system and continues to cooperate with competent authorities and industry partners to prevent blocked products from being transferred in violation of regulations.
Due to this investigation, Supermicro may once again have to face the turmoil that has been going on since March this year. At the time, U.S. prosecutors charged co-founder Liao Yixian and two others with violating export controls by moving Supermicro servers to China. Liao Yixian immediately resigned. A few months later, Taiwanese investigators also searched Supermicro offices and other locations to trace the flow of Huida chips they controlled.
Supermicro said in August that it had completed an internal investigation led by independent directors and found no evidence that current senior executives knew about the suspected illegal arrangements or that regulated hardware was removed. Supermicro also said it has strengthened export compliance measures as recommended and continues to cooperate with authorities’ investigation.
Barron’s Weekly analyzed that if Supermicro is re-examined, it could be beneficial to Dell, its main AI server competitor. Dell’s share price has nearly tripled this year, thanks to heavy spending on AI equipment.
