Super Micro Shares Fall 12% Amid China Smuggling Inquiry

Super Micro Computer shares fell as much as 12% Thursday amid a federal inquiry into suspected efforts to smuggle the company’s products into China, renewing scrutiny of its export controls.

Manhattan prosecutors are examining whether groups linked to Alice Huang tried to smuggle Super Micro products into China. Huang is an executive at Singapore-based Megaspeed. Super Micro shares were down about 9% at another point during the session.

Super Micro said Megaspeed has never been its customer. The company also said it cooperated with U.S. and Taiwanese officials and provided information to authorities in Singapore.

An indictment unsealed in March charged co-founder Yih-Shyan “Wally” Liaw and two others over an alleged plan to ship servers to China in breach of export controls. In August, Super Micro said an independent board review found no evidence that current senior managers knew of the alleged scheme. The company also said it had adopted recommended improvements to its export-compliance program.