U.S. Fines Semiconductor Firm $4.25 Million for Illegal Huawei Shipments
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The United States government has fined California-based Alpha and Omega Semiconductor Ltd. (AOS) $4.25 million for illegally shipping power chips and modules to Huawei Technologies Co. Ltd. in violation of strict export controls imposed on the Chinese telecom giant.
The Commerce Department’s Bureau of Industry and Security (BIS) said on Thursday that AOS had made 15 unauthorized shipments of around 1,650 power controllers and modules to Huawei in 2019. The shipments occurred despite Huawei’s inclusion on the U.S. “Entity List,” which subjects listed firms to rigorous export restrictions.
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- Alpha and Omega Semiconductor was fined $4.25 million for 15 unauthorized shipments of power chips to Huawei in 2019, violating U.S. export controls.
- Shipments occurred after Huawei was placed on the U.S. Entity List; AOS continued exports despite legal advice and regulatory risk.
- The Commerce Department has tightened rules since 2019, with penalties for violators including severe fines and prison; Seagate was previously fined $300 million.
- Alpha and Omega Semiconductor Ltd.
- Alpha and Omega Semiconductor Ltd. (AOS) is a California-based company founded in 2000 that designs and supplies power semiconductors. The US government fined AOS $4.25 million for illegally shipping power chips to Huawei in 2019, violating export controls. AOS made 15 unauthorized shipments, despite Huawei being on the U.S. "Entity List."
- Huawei Technologies Co. Ltd.
- Huawei Technologies Co. Ltd. is a Chinese telecom giant that has faced strict export controls from the U.S. government since 2019. These restrictions, imposed due to national security concerns, have led to companies like Alpha and Omega Semiconductor Co. Ltd. (AOS) and Seagate Technology Holdings PLC being fined for unauthorized shipments of technology to Huawei.
- Seagate Technology Holdings PLC
- Seagate Technology Holdings PLC was fined $300 million by the Bureau of Industry and Security (BIS) in April 2023. This fine was for selling hard drives to Huawei without the proper licenses, marking the largest administrative penalty in BIS history.
- May 2019：
- Huawei was added to the U.S. Entity List, requiring U.S. firms to obtain BIS authorization before supplying certain technology to Huawei.
- 2019：
- Alpha and Omega Semiconductor Ltd. (AOS) made 15 unauthorized shipments of around 1,650 power controllers and modules to Huawei.
- 2020：
- BIS introduced the 'Foreign Direct Product Rule,' further restricting global supply of chips using U.S. technology to Huawei.
- April 2023：
- BIS fined Seagate Technology Holdings PLC $300 million for selling hard drives to Huawei without proper licenses.
- By 30 days after BIS announcement (in 2024)：
- AOS is required to pay a $4.25 million civil penalty or risk losing ability to obtain future export licenses.
- May 2025：
- BIS escalated measures by banning global companies from using Huawei’s Ascend AI chips and warned of severe penalties for violations.
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