AOS Agrees to $4.25 Million Settlement With US Over Unauthorized Shipments to China’s Huawei
Udumbara
California-based chip designer Alpha & Omega Semiconductor (AOS) has agreed to pay $4.25 million to settle a probe over its unlicensed exports to sanctioned Chinese company Huawei.
The bureau said AOS is required to pay the fine within 30 days or the company will face interest and administrative charges and could lose its export privileges for one year.
According to the BIS, at the time, AOS was in talks with potential customers—including Huawei—for its new Digital Power business unit.
Between May 28 and June 7, 2019, AOS shipped approximately 600 sample products in four batches to Huawei via an AOS affiliate in China, so Huawei could test whether the products met its needs.
Before these shipments, AOS’s outside counsel had advised that “BIS authorization would not be required for products assembled in China and which did not contain more than a de minimis amount of controlled U.S.-origin content.”
The order noted that “AOS did not provide its outside counsel with details specific to the completed samples being exported from the United States in connection with Huawei’s supplier qualification process.”
On or around June 16, 2019, at AOS’s request, the outside counsel provided further guidance, clarifying that the transfer of foreign-made products from the United States also required BIS approval.
After that, AOS made 11 additional unauthorized shipments, sending approximately 1,056 items, according to the order.
BIS said AOS “did not distribute the guidance to its employees or take steps to understand whether AOS employees were exporting items from the United States for end use by Huawei.”
The bureau determined that the company had made the 11 shipments while knowing or having reasons to know that it was breaking export licensing rules.
The settlement “does not impact AOS’s ongoing business operations,” AOS said.
The company added that it has “consistently demonstrated its commitment to complying with all applicable regulatory requirements, including export control regulations, and has significantly strengthened its procedures and policies to ensure ongoing compliance.”
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