The arrest of board member Yih-Shyan “Wally” Liaw—who previously resigned following an accounting scandal in 2018—led an after-hours trading drop of 12% in the Nvidia-linked server manufacturer's stock.

The U.S. government has been trying to crack down on illegal shipments of top-tier Nvidia artificial intelligence chips to China.

Three men, including a Super Micro VP, charged with smuggling U.S. AI technology to China, threatening national security.