Supermicro finally hires new CFO after $2.5 billion smuggling case and co-founder's arrest

Super Micro Computer, a key partner of Nvidia and SpaceX, has appointed a new Chief Financial Officer (CFO), nearly two years following a board-level independent investigation that prompted the need for a replacement for longtime CFO David Weigand.

Mark Long, who is 59 years old, has assumed the role of CFO effective immediately. His extensive experience includes serving as CFO and Chief Strategy Officer at Western Digital, a data storage powerhouse with a market capitalization of $130 billion. Additionally, he operates an investment and advisory firm known as Prime Impact Capital. Long has also held the position of co-CEO and CFO at a Special Purpose Acquisition Company (SPAC) that he co-founded, which raised $300 million preceding its merger in 2023 with Beijing-based Cheche Technology, an auto insurance technology platform.

Long's entry into Supermicro occurs at a time of significant complexity for the hardware manufacturer, which has established connections with Nvidia and its CEO Jensen Huang and Elon Musk's xAI, now integrated within SpaceX. His background as a seasoned executive and technology investor is expected to mitigate the uncertainties surrounding Supermicro and enhance its credibility with cautious investors.

In March, the Department of Justice and the FBI indicted and arrested Supermicro co-founder Yih-Shyan "Wally" Liaw in connection with a startling smuggling case involving $2.5 billion worth of Supermicro hardware that contained Nvidia's export-controlled chips. These chips were allegedly illicitly shipped to China. Liaw, alongside two additional individuals associated with Supermicro, is accused of employing extreme measures to deceive authorities, including using hairdryers to modify sticky labels and staging thousands of dummy server units that were non-operational replicas of actual Supermicro servers since the genuine devices had already been rerouted to China.

Supermicro is not a defendant in this case and has stated that it is cooperating with law enforcement. Liaw has pleaded not guilty. However, his arrest in March instigated another board-managed internal investigation, distinct from the previous investigation that led to the search for a new CFO. This internal examination, completed by August, found no evidence that current senior management was aware of the smuggling activities.

Liaw had a longstanding association with Supermicro as a board member before resigning following his arrest and indictment. Liaw's history with co-founders Charles Liang and Sara Liu is notable; Liu and Liang are married and both serve on the Supermicro board. Notably, Liaw had previously exited Supermicro in the midst of an internal audit committee investigation shortly before the SEC launched a probe in 2018, which accused the company and its then-CFO of improper revenue recognition. Supermicro ultimately settled these SEC charges by paying a $17.5 million fine in 2020. Liaw returned as a consultant to Supermicro in May 2021 and subsequently became a full-time employee before reentering the board in December 2023.

The prior investigation, which necessitated leadership changes in the CFO position, was sparked by the abrupt departure of auditor EY. This review focused on export control issues and the rehiring of employees who had left in 2017 amid earlier accounting inquiries. As CFO and Chief Compliance Officer, Weigand was accountable for several process failures identified during the investigation, including a consulting agreement with the former CFO that EY had not been informed about.

Following Liaw's arrest in March 2026, Supermicro disclosed that it received a grand jury subpoena from the U.S. Attorney's Office for the Southern District of New York regarding both Liaw’s indictment and the firm's compliance program. The company also faced subpoenas and inquiries from foreign authorities, the Securities and Exchange Commission (SEC), and the Bureau of Industry and Security, the U.S. Department of Commerce agencies responsible for trade compliance. In his case, Liaw's attorney indicated to the judge that the documentation Supermicro would supply to the government could be relevant to his defense, leading to a postponement of his trial from November 2026 to March 2027.

Since then, one of the individuals indicted along with Liaw, Ting-Wei "Willy" Sun, who had worked as a contractor for Supermicro, has pleaded guilty. His guilty plea included four counts, among them conspiracy to smuggle goods, violations of export regulations, and obstruction of justice. Notably, the latter charge arose from his admission that he deleted an encrypted messaging application from his phone on the day of the arrests, March 19, 2026. Sun's sentencing is scheduled for September 2027, and he could face a maximum of 20 years for the obstruction and conspiracy charges, in addition to forfeiting any proceeds from the export violations.

Long's appointment as CFO places him in a challenging position within the company. Recently, the board has reinforced its ranks with the addition of Shesha Krishnapura, former IT CTO at Intel, while board member Judy Lin has retired. Lin previously held the role of Vice President at Western Digital from 2007 until September 2012, departing shortly after Long began his consulting role there in March 2012 prior to formally joining the company in January 2013.

For his new role, Long will receive a base salary of $725,000, along with a signing bonus of $500,000 and a guaranteed annual cash bonus of $500,000. He is also eligible for additional cash bonuses and an annual equity grant determined by company performance and personal achievements. Long's initial equity grant, valued at approximately $4.1 million based on recent stock prices, includes options on 150,000 shares.

Supermicro has chosen not to make Long available for interviews. In a statement, CEO Charles Liang expressed gratitude to Weigand for his contributions and anticipated that Long would make "an immediate positive impact" on fortifying the company's financial execution strategy. Weigand will remain with the company to facilitate the transition to Long.