The United States Department of Justice has arrested two out of three wanted fugitives, over artificial intelligence technology being smuggled out of the country to China.
The three are linked to U.S. based AI server maker company, Super Micro Computer (NASDAQ: SMCI), and shares fell by as much as 14.6% in after-hours trading, following the arrests.
Prosecutors have not named Super Micro as the defendant, but they are cooperating with the investigation.
The two arrested include the founder of the company, Yih-Shyan Liaw, who still serves as Senior Vice President of Business Development, and a sales manager for the Taiwan branch, Ruei-Tsang Chang.
Ting-Wei Sun, who remains at large, was a company contractor.
The charges will be linked to an alleged scheme for smuggling U.S. AI servers to China, with the States having had AI export restrictions in place against China since 2022.
