Cadence Faces $100 Million Fine for Illegal Chip Sales to Chinese Military University
Cadence Design is poised to pay over $100 million to settle accusations of illegal sales of chip design technology to a Chinese military university linked with nuclear simulations. The case underscores ongoing U.S. export control enforcement even amid trade negotiations with China. Investigations date back over four years.
In a significant development, Cadence Design is anticipated to pay the U.S. government over $100 million to resolve allegations over illegal sales of its chip design products to China's National University of Defense Technology (NUDT). The institution, which has ties to nuclear simulation activities, has been under U.S. export restrictions since 2015.
According to insiders, Cadence is accused of selling design technology through front companies linked to NUDT. These actions violated U.S. export controls, highlighting the complexities in U.S.-China trade relations. The potential settlement emerges amid ongoing negotiations between the two nations, with the U.S. signaling its commitment to enforcing export boundaries.
Cadence's dealings, under investigation for over four years, include numerous sales to NUDT through various aliases. These sales were facilitated despite multiple entities being on the U.S. restricted trade list, which blocks them from accessing American technology without special licenses. The case reflects broader tensions and regulatory challenges facing companies within the semiconductor industry.
(With inputs from agencies.)
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