Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTPatrick SandersThu, July 2, 2026 at 8:44 PM GMT+2 4 min readEngineer holding computer microchip by LIGHTFIELD STUDIOS via Adobe StockThings are going from bad to worse for Supermicro (SMCI). In June, SMCI stock fell badly after Supermicro announced that it was seeking $7 billion in funding to pay for a backlog of $39 billion in orders. More recently, however, the company's offices in Taiwan were raided by local government agents as part of an ongoing investigation related to allegations of smuggling Nvidia (NVDA) GPUs into China.SMCI stock fell 8% on June 29 and is now down 46% in the last month. Investors are understandably cautious. Supermicro doesn't have the best of reputations, considering it was temporarily delisted from the Nasdaq in 2018 for not filing timely financial reports, then fined in 2020 by U.S. regulators for accounting violations.More News from BarchartCEO Phong Le Bought 11,000 Shares of MicroStrategy Preferred Stock as STRC Hit All-Time LowsCathie Wood Bets Big on Cerebras and Palantir Stocks After Sharp PullbackAnalysts at UBS Say Advanced Micro Devices Stock Could Rally to $670Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!Supermicro has proclaimed its innocence and is cooperating with authorities. But the recent scandal is another chapter in a string of controversies weighing on SMCI stock. www.barchart.comAccording to Bloomberg, investigators in Taiwan "raided the residences of six people" and three affiliated companies in the Keelung district. Raids were also conducted at Supermicro's offices, Taiwan-based data-center operator Chief Telecom, and distributor Albatron Technology.These raids are notable because Taiwanese law doesn't view AI chip exports to China as a crime. However, authorities are considering enacting such legislation, as it aims to align with the U.S., which has been restricting sales of advanced chips to China.In March, the U.S. indicted Supermicro co-founder Yih-Shyan "Wally" Liaw, sales manager Ruei-Tsang "Steven" Chang, and contractor Ting-Wei "Willy" Sun on charges that they allegedly attempted to divert $2.5 billion in Nvidia-powered AI servers to China in violation of U.S. export controls. All three were terminated or resigned, and the company has hired an outside law firm and forensic firm to conduct an independent investigation.Management doesn't believe Supermicro will need to restate earnings. "The initial transaction – Supermicro's sale of products to an authorized reseller – followed a rigorous vetting and review process that exceeded applicable government requirements," the company noted in a statement. "This case highlights the challenges that can arise when products are resold through multiple downstream parties beyond direct manufacturer control. It also underscores the importance of continued collaboration across industry and government to strengthen safeguards, enhance supply chain visibility, and facilitate the enforcement of export control laws. Supermicro will continue to cooperate with law enforcement and government officials in the United States, Taiwan and other jurisdictions to ensure our technology is distributed as lawfully intended."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info