Xianfeng Zuo Sentenced for Counterfeit Chip Trafficking

Xianfeng Zuo, 38, of Shenzhen, China, was hit with a 15-month federal prison sentence today in Hartford for his role in a high-stakes scheme to traffic counterfeit computer chips used in military and aerospace systems. U.S. District Judge Robert N. Chatigny handed down the sentence after Zuo pleaded guilty to conspiracy to traffic in counterfeit goods, a crime that struck at the heart of national security concerns.

The operation, led by Zuo, Jiang Yan, and Daofu Zhang—all Chinese nationals—targeted advanced integrated circuits (ICs) manufactured by Xilinx Corp., a California-based firm whose chips are radiation-tolerant and used in space and defense systems. In summer 2015, Zuo tasked Yan with sourcing these restricted ICs from inside the United States, knowing full well the export controls in place. When told the chips couldn’t be legally exported, Yan didn’t back down—he doubled down, proposing a plan to swap stolen military-grade ICs with counterfeits.

By November 2015, Daofu Zhang had already shipped two packages from China containing eight fake Xilinx ICs, each bearing forged brand labels, to a U.S. contact. The counterfeit chips weren’t just knockoffs—they were designed to look identical to the real thing, a move that could have compromised critical defense systems if deployed. Undeterred by the risk, Zuo, Yan, and Zhang flew together to the U.S. in early December 2015 to finalize the deal.

On December 10, 2015, the trio drove to a remote drop site near Route 95 in Milford, Connecticut, expecting to exchange cash for the stolen ICs. Instead, they were met by federal agents from multiple agencies who arrested all three on the spot. Zuo has remained in custody ever since, facing the full weight of federal prosecution.

As part of his sentence, Zuo was ordered to forfeit $63,000 in cash seized during his arrest—a sum investigators believe was intended to pay for the stolen electronics. Daofu Zhang, who shipped the counterfeit chips, was also sentenced to 15 months in prison on July 8, 2016. Jiang Yan has yet to be sentenced but has already pleaded guilty to the conspiracy charge.

The investigation was a rare joint operation involving the Defense Criminal Investigative Service, Homeland Security, Commerce Department, FBI, and Air Force Office of Special Investigations. Prosecuted by Assistant U.S. Attorney Henry Kopel and DOJ Counterintelligence and Export Control Section attorneys Casey Arrowood and Thea Kendler, the case underscores the growing threat of counterfeit electronics infiltrating U.S. defense supply chains—and the federal crackdown that follows.