The US government has fined Seagate $300 million for allegedly breaking export controls on hard disc drives to China’s Huawei.
After export limitations were implemented in 2020, Seagate Technology delivered Huawei items totaling more than $1.1 billion, according to data from the Department of Commerce, news agency IANS reported citing the BBC.
The fine is the most recent action taken by the US government to halt the export of advanced technology to China.
According to US sources, China’s military might use this equipment.
According to the Commerce Department, Seagate sold 7.4 million discs to Huawei for nearly a year after the restriction was implemented by former President Donald Trump’s administration.
It continued to do so “even after Huawei was placed on the Entity List for conduct inimical to our national security,” according to Matthew Axelrod of the Department of Commerce’s Bureau of Industry and Security (BIS).
“This settlement is a clarion call about the need for companies to comply rigorously with BIS export rules, as our enforcement team works to ensure both our national security and a level playing field,” Axelrod added.
Seagate said the penalty will be paid in instalments of $15 million every three months for the next five years, IANS reported quoting BBC.
In compliance with the new regulation, the Department said that Huawei’s other two primary hard drive vendors had suspended deliveries to the Chinese company. It occurs at a time when the US is still trying to stop China from buying advanced computer chips and other technologies.
