Seagate gets $300 mln fine for Huawei supplies

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1 年前

STORY: Seagate Technology has agreed to pay a $300 million penalty over its dealings with Huawei.

That's part of a settlement with U.S. authorities.

The company was accused of shipping more than $1.1 billion worth of hard disk drives to the Chinese company, in violation of U.S. export control laws.

Seagate sold drives to Huawei between August 2020 and September the following year.

At the time, Washington had restricted the sale of certain items made with U.S. technology to Huawei.

The Chinese firm was placed on a U.S. trade blacklist four years ago due to national security concerns.

The U.S. believes China could use advanced technology to support its military or enable human rights abuses.

U.S. regulators said Seagate shipped over 7 million drives to Huawei after the rule took effect in 2020.

It also became Huawei's only supplier of hard drives as two other suppliers stopped shipments.

Seagate argued that its foreign-made drives were not subject to U.S. export controls as they were not the direct product of U.S. equipment.

The companies did not respond to requests for comment.