U.S. Probe, Congressional Subpoena Pressure Continue Despite Jensen Huang's Resignation... Alice Huang Investigated for Alleged Smuggling Role
Former CEO Jensen Huang Tentatively Agrees to Closed-Door House Testimony
Mast: "Subpoena if He Refuses"
Senate Also Signals Investigation
Former Nvidia CEO Jensen Huang resigned amid an extramarital affair scandal, but investigations by the U.S. Department of Justice and Congress are expanding. The DOJ has launched an investigation into whether Alice Huang, suspected of being a Chinese spy, was involved in smuggling U.S.-made advanced semiconductor servers into China. The U.S. House of Representatives is seeking closed-door testimony to determine whether there was a national security threat, regardless of the former CEO's resignation.
According to Bloomberg on Nov. 12, the DOJ is investigating whether companies linked to Alice Huang were involved in attempts to smuggle Supermicro products into China. The investigation is being led by the U.S. Attorney's Office for the Southern District of New York in Manhattan.
The case drawing attention in connection with the investigation is a server-smuggling case involving Yi-Hsien "Wally" Liao, a co-founder of Supermicro. In March, the U.S. Attorney's Office in Manhattan indicted Liao and two others on charges of exporting servers containing Nvidia semiconductors to companies in Southeast Asia and then rerouting them to Chinese customers. Prosecutors said two unidentified intermediary companies were also involved in moving the servers to China.
However, it has not been disclosed what specific role Alice Huang or the companies linked to her played in the case. Liao denied the charges and has since left Supermicro. Supermicro was not included among those indicted.
The DOJ is also investigating allegations that Alice Huang engaged in espionage. Investigators are examining the relationship between Alice Huang and former CEO Jensen Huang. Jensen Huang is not currently believed to be a target of the U.S. investigation.
U.S. Congress Seeks Jensen Huang's Testimony... Tentative Agreement for Closed-Door Testimony
Congress, too, says it will continue investigating national security-related allegations regardless of the former CEO's resignation. According to CNN, House Foreign Affairs Committee Chairman Brian Mast said that the previous night, the former CEO had tentatively agreed to appear before key House committees and testify behind closed doors.
Earlier, Chairman Mast, House Select Committee on the Chinese Communist Party Chairman John Moolenaar, and House Intelligence Committee Chairman Rick Crawford asked the former CEO to attend a closed-door joint briefing on Nov. 18.
Chairman Mast warned that he was prepared to issue a subpoena if the former CEO reversed his decision to appear. He said that if the former CEO appeared, he would be required to testify under oath at a minimum, and that his statements would be recorded and videotaped. Whether the testimony will be made public has not yet been decided.
Other Nvidia executives may also become subjects of the investigation. Chairman Mast said, "We are also interested in testimony from other groups within Nvidia connected to Jensen and his work."
Chairman Moolenaar stressed that investigators should determine the activities of Chinese intelligence agencies, whether they had access to classified information, and whether there was lobbying to influence semiconductor export controls on China.
He also pointed out that the former CEO had strongly opposed advanced semiconductor export controls. Chairman Moolenaar said the situation had changed following the former CEO's ouster, but that "he has criticized people who believe export controls are justified," and argued that he should appear in person to explain the relevant issues.
Investigations are also taking shape in the Senate, following the House. Senate Majority Leader John Thune, a Republican, told reporters that day, "Given the very serious risks at stake in terms of national security, I expect there will be follow-up action," CNBC reported.
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, also stressed that the former CEO's resignation did not exempt him from accountability for the allegations.
Hot Picks Today
"Two Spend 500,000 Won in a Flash, Yet Wait Two Hours?" ... 'Dreamland' Shunned by Kids and Foreign Tourists
- The Era of Getting 200 Million Won After 30 Years Is Over... A Japanese Bank's "Perpetual Department Head" Who Just Clocked In Cries Out
- Spain Hit by Its Worst Tragedy... Lee Kangin, Moreno and Real Madrid Join Soccer World in Mourning
- They Said, “Make It Your Home for Life” - Then Suddenly Kicked 200 Passengers Off... What Happened to the Around-the-World Cruise?
- "130 Rice Bowls Sold Out in a Day"... 'Unfiltered Face' Adds 8 Million Won to Night Market Sales: China's Bungeunwoo
Meanwhile, after admitting on Nov. 8 to having an extramarital relationship with Alice Huang, the former CEO stepped down from his position as Nvidia CEO on Nov. 12 as the controversy intensified. Nvidia appointed Chief Financial Officer (CFO) Colette Kress as interim CEO.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.