Cadence Design to Settle U.S. Charges Over Chinese Military Sales
Cadence Design will pay $140 million to settle U.S. charges of selling chip design products to a Chinese military university. Accused of export control violations, Cadence's sales allegedly supported nuclear explosive simulations. The settlement reflects continued U.S. enforcement amid trade talks with China.
In a significant legal resolution, Cadence Design has agreed to a $140 million settlement to address allegations of violating U.S. export controls. According to the Justice Department, the California-based company's chip design software and hardware were sold to Chinese entities linked with nuclear simulation activities.
The sales reportedly involved China's National University of Defense Technology, an institution listed in 2015 for forbidden U.S. technology exports due to national security concerns. Despite facing restrictions, investigative findings highlight Cadence's historical transactions with Chinese customers, triggering a multifaceted government inquiry commencing over four years ago.
Cadence's disclosure of these legal developments coincided with a stock market surge of 7.8%, emphasizing the mixed economic impacts of geopolitical tensions. The case underscores the U.S.'s ongoing commitment to enforcing export regulations, even as diplomatic negotiations with China develop.
(With inputs from agencies.)
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