Stock of Super Micro Computer (SMCI) Drops as Chinese Military – Related Universities Are Found to Have Used Restricted Nvidia Chips

TLDR

• Over the past year, four Chinese universities—two with ties to the People’s Liberation Army (PLA)—purchased Super Micro servers containing restricted Nvidia A100 chips.
• Three individuals associated with Super Micro, including its co-founder, were charged last week with aiding in the smuggling of $2.5 billion in U.S. AI technology to China.
• Super Micro maintains it was a victim of the scheme and was not named in the indictment.
• Two U.S. senators are now urging Commerce Secretary Howard Lutnick to pause all export licenses for advanced Nvidia AI chips to China and Southeast Asian intermediaries.
• Beihang University and Harbin Institute of Technology—both on the U.S. export blacklist—are among the confirmed buyers.

(SeaPRwire) –   Shares of Super Micro Computer (SMCI) and Nvidia (NVDA) fell sharply on Thursday after Reuters reported that Chinese universities with links to the People’s Liberation Army had acquired Super Micro servers equipped with restricted Nvidia AI chips.

Super Micro Computer, Inc., SMCI

Procurement data reviewed by Reuters shows that four Chinese universities bought the servers over the past year, with two of these institutions having direct connections to the PLA.

Since 2022, the U.S. has restricted the sale of certain Nvidia chips, including the A100, to China, citing concerns that advanced AI chips could bolster China’s military capabilities.

This development follows just days after three individuals connected to Super Micro—including the company’s co-founder—were charged with allegedly facilitating the smuggling of at least $2.5 billion in U.S. AI technology to China.

Super Micro was not named in the indictment. The company has stated it was the victim of an elaborate scheme carried out by those individuals.

Reuters also found that two additional universities—one with military ties—attempted similar purchases, though it remains unclear if those transactions were finalized.

Super Micro declined to comment on the procurement documents. Nvidia said it continues to work closely with customers and the U.S. government to ensure compliance.

PLA-Linked Schools Named in Procurement Records

Among the confirmed buyers is Beijing’s Beihang University, one of China’s “Seven Sons of National Defense.” A March 16 notice revealed it procured a machine-learning workstation built on a Super Micro system with four Nvidia A100 chips.

Harbin Institute of Technology (HIT), another “Seven Sons” institution known for research in missiles, satellites, and robotics, acquired a Super Micro system with eight Nvidia A100 chips, according to a July notice.

Both universities are on the U.S. export blacklist, which complicates legal supply from U.S. companies. Neither responded to Reuters’ requests for comment.

Senators Push for Export Pause

Two U.S. senators addressed the situation on Monday by writing to Commerce Secretary Howard Lutnick, urging him to consider pausing all export licenses for advanced Nvidia chips and server systems bound for China or intermediaries in Southeast Asia.

The Trump administration had previously approved the sale of Nvidia’s H200 chips—more powerful than currently restricted models—to China under specific conditions. Sources indicated this month that Nvidia has also secured Beijing’s approval to sell the H200, though no confirmed sales have occurred yet.

Neither China’s commerce ministry nor the U.S. Commerce Department responded to Reuters’ requests for comment.