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Seagate Fined $300 Million For Selling 7.4 Million Hard Drives To Huawei

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Charles Rollet
Apr 20, 2023

The US government fined Seagate $300 million for selling millions of hard drives to Huawei, it has announced:

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******* **** "**** *.* *******" **** drives ** ****** ******* ** ********* banning *** **** ** *******-******** ***** by ** ***** ** ****** ** 2020, *** ******** **********'* ****** ** Industry *** ******** (***) ******:

** ****** ****, *** ******* ******** overcertain *******-******** ***** related to Huawei, as further described below. Despite this, in September 2020, Seagate ********* ** ***** ******** ** ** ******** **** ******. Seagate did so despite the fact that its only two competitors had stopped selling HDDs to Huawei, resulting in Seagate becoming Huawei’s sole source provider of HDDs. Subsequently, Seagate entered into a three-year Strategic Cooperation Agreement with Huawei, naming Seagate as “Huawei’s strategic supplier” and granting the company “priority basis over other Huawei suppliers.” [emphasis added]

*** ****** **** ** *** "******* standalone **************" **** ** *** *******, calling ** * "******* ****" *** companies ** "****** **********":

“**** ***** ****** *** ****** ** the ****** **** *** ******* ******** to *** ******** ********, *** *** competitors *** ******* ******* ** **** due ** *** ******* ****** ******* rule,Seagate ********* ******* **** **** ****** ** ******,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s action is the consequence: the ******* ********** ************** ********** ** *** ******’* *******. This settlement is aclarion **** ***** *** **** *** ********* ** ****** ********** **** *** ****** *****, as our enforcement team works to ensure both our national security and a level playing field.” [emphasis added]

*** *********, ******* ********* ** ******* *** emphasized **** "** ******** ** ******** **** *** relevant ****** ******* **** ** *** time":

"*****we ******** ** ******** **** *** ******** ****** ******* **** ** *** **** we made the hard disk drive sales at issue, we determined that engaging with BIS and settling this matter was the best course of action,” **** ******, *******’* ***** ********* *******, **** [emphasis *****]

** ****,******* ************** **** ****** ** ***** ***** the** ********** ********* ************* *********** ***** ** ******* ****** ** US ***** ** *******-******** ***** ** the *******, ** * **** ******* to *** *** ** ******* ** Huawei ** ****. ******* ************ **** of *** **** ****** ** ********.

**** *** ***** ******* ** ** still ***** ** *********, ***** *** not **** ** *** ********* **** semiconductor *********, *** **** * ** ****** ********* ***** 2019.

(6)
Avatar
Charles Rollet
Apr 20, 2023

******: ******* ******** ** ******* ** whether ** ***** ***** ** *********:

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(1)
(1)
UI
Undisclosed Integrator #1
Apr 20, 2023

**************: "** ****** ** **."

(1)
(1)
DD
Davide De Bella
Apr 27, 2023

**** * ***'* ********** **'* ***** the ********** ******** ** **** *********.

**** ***'** ********* **** ******, **** homeland **** *** ****** ******* ***** regulations, ****, ***** *****, ****, ************ and ** **, *** * ****** company (*.*. *******) ***'* **** *** products ** ****?

**** ** ********** *****/*******/**** **** ** public ********* ****** ****** ******** ******* of ******* ** **** **** *** place ***** **** **** *** **** up?

**** ** ********** *****/*******/**** **** ** public ********* *********** ***** ******* **** important **** ******** ********?

RH
Ron Hoppner
Apr 27, 2023

*** ** *** ** ****. ***** the ***.

DD
Davide De Bella
Apr 27, 2023

*** *** ***** *** * ***** but * ***'* **** *** ***** to ** *********.

** *** **** **** **** ** US ********** ****** ******* ******* *** such ******* *** ** ******** *** internal *** ** ** ******* **** to ***** ********* **** ** * threat *** ** **********?

*** ******* ** **** *** **** US ********?

** **** *** ***** ******** ***** USA **** * ******** ********?

**** ***, ****** *** ** **?

* **** ********* **** *** ***** ago ***** (*** **** ** ******) opened ********* ** *** ******** **** Chinese *******.

*** ***'* * ********* ********* **** accepting ******* *********** ** ***.

**'* *** ***** *** **...

*** *** ******* ** ** **********

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