California-based electronic design automation firm Cadence will pay more than $140 million in combined civil fines, criminal penalties and forfeitures after the U.S. said it violated export controls against China. The company pleaded guilty to illegally exporting EDA hardware, software and semiconductor design intellectual property technology to Chinese entities, including a university and company on the Entity List.
Cadence, a California-based electronic design automation firm, will pay more than $140 million in combined civil fines, criminal penalties and forfeitures to resolve allegations that it illegally exported technology to Chinese entities, DOJ and the Bureau of Industry and Security announced July 28. The company pleaded guilty to illegally exporting EDA hardware, software and semiconductor design intellectual property technology to the National University of Defense Technology, a university added to the Commerce Department's Entity List for its ties to the Chinese military, DOJ said.
The Senate Banking Committee voted 13-11 along party lines July 23 to approve David Peters' nomination as assistant secretary of commerce for export enforcement.
The Bureau of Industry and Security’s latest export control enforcement action against a semiconductor firm shows the agency may be preparing to target companies that flout its high probability standard, a trade lawyer and industry consultant said.
The U.S. government, together with industry, needs to set clearer guardrails around sensitive technology shipments destined to China, two panelists said during an event on export controls last week. Another panelist questioned whether the Trump administration is willing to set tougher rules, saying Beijing appears to have recently gained extra leverage and adding that the U.S. has for years failed to deter companies from flouting restrictions against China.
Companies should expect the Bureau of Industry and Security to continue a steady pace of penalties against export violators, particularly for cases involving semiconductors and other advanced technologies, said Gregory Dunlap, the former special agent in charge of the agency’s Los Angeles field office. And if Congress grants the agency’s request for more funding, Dunlap said, BIS could soon have the resources to more quickly carry out investigations and probe a greater number of exporters.
The Bureau of Industry and Security fined a California semiconductor developer and supplier $4.25 million for violating U.S. export controls against Huawei, saying it illegally forwarded more than 1,500 power controllers, smart power stages and related accessories to the Chinese company without a license.
Export Compliance Daily is providing readers with the top stories from last week, in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
Export Compliance Daily is providing readers with the top stories from last week, in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Bureau of Industry and Security this week officially released its enforcement order, charging letter and settlement agreement involving Unicat Catalyst Technologies, the Texas-based industrial equipment supplier that recently was assessed millions of dollars in combined penalties by BIS, DOJ and the Office of Foreign Assets Control for allegedly violating export control and sanctions laws (see 2506170047).