Key Points
- Alpha and Omega Semiconductor (AOS) will pay a $4.25 million fine to the U.S. government.
- The fine settles charges that the company illegally shipped electronic components to Huawei in 2019.
- AOS broke the rules by failing to obtain a required license to sell to Huawei, which is on the U.S. trade blacklist.
- The fine resulted from a civil investigation by the Department of Commerce following the Department of Justice’s decision to drop its criminal case.
A California-based chip company, Alpha and Omega Semiconductor (AOS), has agreed to pay a $4.25 million fine to settle charges that it illegally shipped electronic parts to China’s Huawei. The U.S. Department of Commerce stated that the shipments violated export rules established to limit Huawei’s access to American technology.
The violations happened back in 2019, the same year the U.S. government added Huawei to its “Entity List,” a trade blacklist. Companies on this list are heavily restricted, and American firms must obtain a special government license to sell to them.
According to the Commerce Department, AOS sent over 1,650 shipments of components, including power controllers, to Huawei without obtaining the required permission.
In a statement, AOS confirmed the settlement, noting that it marks the end of a five-year investigation. The company downplayed the severity of the issue, referring to the violations as “limited administrative export control charges,” and stated that the fine would not impact its ongoing business operations.
This settlement marks the culmination of a long-running investigation into the company. While the Department of Justice had previously investigated AOS for the same actions, it closed its criminal case without filing charges. However, the Commerce Department continued its civil investigation, which ultimately led to this multi-million-dollar fine.
