SAN JOSE – In a staggering turn of events, Cadence Design Systems Inc. (Cadence), the Silicon Valley giant renowned for its electronic design automation (EDA) technology, has been forced to admit to a colossal lapse in judgment. The company is set to plead guilty and shell out over $140 million in fines after being caught red-handed exporting sensitive semiconductor design tools to the National University of Defense Technology (NUDT).
NUDT, a university in the People’s Republic of China (PRC) under the Central Military Commission’s wing, has long been on the U.S. Department of Commerce’s Entity List. This is due to its use of American technology to fuel supercomputers believed to support military and nuclear simulation activities.
The U.S. Attorney’s Office for the Northern District of California (NDCA) and the Justice Department’s National Security Division (NSD) Counterintelligence and Export Control Section (CES) today revealed that Cadence has agreed to a criminal plea deal, including paying nearly $118 million in penalties. To add insult to injury, Cadence also faces over $95 million in civil fines imposed by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS).
According to U.S. Attorney Craig H. Missakian for the Northern District of California, ‘Export controls are crucial in safeguarding America’s advanced technology from ending up in the wrong hands. Cadence’s actions were a clear breach, and their remedial measures are now a step towards rectifying this violation of export control laws.’
Assistant Attorney General for National Security John A. Eisenberg echoed these sentiments, emphasizing the importance of protecting American ingenuity: ‘Our nation’s technological advantage is paramount, and we will enforce U.S. export control laws with vigilance to protect it.’
Roman Rozhavsky, Assistant Director of the FBI’s Counterintelligence Division, stressed the significance of safeguarding the U.S. semiconductor industry for national defense: ‘The FBI will leave no stone unturned in defending our homeland from any threat posed by unauthorized technology transfers.’
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Public Corruption|White Collar Crime|Organized Crime
- Source: Official Source ↗
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