By Callum Keown
Super Micro Computer has written an open letter to reassure customers after two employees were detained in Taiwan as part of an investigation into alleged smuggling of Nvidia chips to China.
The AI server maker may have to work even harder to comfort investors. The stock closed down 1.6% Thursday at $27.22 after a 6% drop on Wednesday. It has slumped 23% over the last eight trading days.
In an open letter to customers and partners, Super Micro said it is not a target of the Taiwanese investigation and it has been assisting authorities for several months.
The company confirmed that four of its employees were detained for questioning on Monday over the sale of its products to a technology company in Taiwan. Two were detained pending a hearing and the other two were released on bail — all four have been placed on administrative leave. Investigators were given access to the employees' desks and electronic devices, the company added.
Chief revenue officer Matt Thauberger addressed the company's customers and partners directly following the events.
"We do not have full visibility of the investigation as it is ongoing. Most importantly, I want to assure you this has absolutely no impact on our ability to serve and support you," he wrote.
"Supermicro remains committed to protect U.S. interests and to safeguarding our advanced technologies and intellectual property for the benefit of our customers, our partners, our company and our industry," Thauberger added.
Taiwanese authorities arrested three people and seized 50 servers in May as part of a collaboration with the U.S. company to "prevent illicit diversion of server technology," the company said in a statement at the time.
In March, the U.S. government charged Super Micro co-founder Yih-Shyan "Wally" Liaw and two other individuals for an alleged plan to divert U.S.-assembled servers to China in a violation of export-control laws. Wally resigned immediately.
Write to Callum Keown at callum.keown@dowjones.com
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