Latest news with #NUDT
Yahoo
29-07-2025
- Business
- Yahoo
Cadence to pay $140m fine for illegal tech exports to China
The US Department of Justice (DOJ) announced that Cadence Design Systems has agreed to plead guilty and pay more than $140m in penalties for exporting semiconductor design tools to a Chinese military university. The company based in San Jose, California, will pay nearly $118m in criminal penalties. This follows its admission of violating export controls by selling electronic design automation (EDA) technology to the National University of Defense Technology (NUDT), which is associated with China's Central Military Commission. National Security Assistant Attorney General John Eisenberg said: 'Cadence has agreed to accept responsibility for unlawfully exporting sensitive semiconductor design tools to a restricted Chinese military university and has implemented a strong export compliance programme to help prevent any further illegal transmission of American technology. 'American ingenuity is one of our Nation's most precious assets, and the National Security Division will vigorously enforce US export control laws to protect the technological advantage we enjoy because of that ingenuity.' NUDT, added to the US Department of Commerce's Entity List in 2015, is believed to have used US-origin components to develop supercomputers for military purposes. From February 2015 to April 2021, Cadence and its subsidiary in China exported EDA tools without obtaining necessary licences, despite knowing NUDT's status on the Entity List. Cadence's court documents reveal employees facilitated exports to NUDT through Central South CAD Center (CSCC), an alias for the Chinese university. The company continued transactions until September 2020 when it ended its relationship with CSCC due to its ties with NUDT. The US Bureau of Industry and Security (BIS) also announced a parallel civil enforcement settlement, with Cadence agreeing to pay over $95m in civil penalties. Further investigation revealed that employees concealed exports' true destination from Cadence's compliance personnel, said the DOJ. The employees also used aliases in communications to avoid detection. Additionally, Cadence transferred contracts from CSCC to Phytium Technology, another entity linked with NUDT. This was before placing Phytium on export hold in March 2021. Following the DOJ and BIS crediting Cadence's payments under the coordinated agreements, the company will pay a total of over $140m in combined net criminal and civil penalties and forfeiture. The resolution awaits approval from a federal judge in the Northern District of California. The Federal Bureau of Investigation and BIS's Office of Export Enforcement conducted investigations into the case. "Cadence to pay $140m fine for illegal tech exports to China" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
29-07-2025
- Business
- Time of India
Cadence nears deal to pay over $100 million to US for China sales
By Karen Freifeld Cadence Design is expected to pay over $100 million to the U.S. government as part of a deal to resolve an investigation into sales of its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, according to two people familiar with the matter. Cadence is accused of illegally selling chip design technology to front companies representing China's National University of Defense Technology, the sources said. NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to U.S. Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence, which said earlier this year it began settlement discussions with the U.S. over sales to China in December, did not immediately respond to a request for comment, nor did NUDT. The Justice Department declined immediate comment. The Commerce Department did not immediately respond to a request for comment. The potential deal, which comes as the U.S. and China meet for new trade talks, shows the U.S. is still willing to enforce U.S. export controls on China, even as it relaxes some of the restrictions as part of negotiations. The sources said the deal is not finalized. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using U.S. technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center, and CSCC. The U.S. investigation into Cadence, which began more than four years ago, involves "historical sales by Cadence to customers in China," according to a company filing. Cadence received a subpoena from the U.S. Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Cadence sold its EDA technology to NUDT through the CSCC or Central South CAD Center alias about 50 times between 2015 and 2020, according to one source familiar with the probe. Chip developer Tianjin Phytium Information Technology, which traces its roots to NUDT, also has been tied to Cadence sales for the university, another source said. Phytium was added to the restricted trade list in 2021. It did not immediately respond to a request for comment. Several employees at a Chinese subsidiary of Cadence were terminated over the sales, one of the sources said. Entities are placed on the restricted trade list, formally known as the entity list, for activities deemed contrary to U.S. national security or foreign policy interests. U.S. companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Cadence will hold a call about its second-quarter financial results at 2 p.m. Pacific Time (2100 GMT) on Monday. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Electronic design automation (EDA) tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the U.S. believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17% in 2023, amid regulatory developments and geopolitical tensions.
Korea Herald
29-07-2025
- Business
- Korea Herald
Cadence to plead guilty, pay $140m to US for China sales
Cadence Design agreed to plead guilty and pay more than $140 million to resolve US charges for selling its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, the Justice Department said Monday. Cadence is accused of violating export controls by illegally selling chip design software and hardware to front companies representing China's National University of Defense Technology. NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to US Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence noted a charge related to the legal proceedings in its quarterly results, also released Monday. In a filing with the US Securities and Exchange Commission, the company said it was "pleased" to reach settlements with the Justice and Commerce departments. The deal shows the US is still willing to enforce US export controls on China, even as it relaxes some of the restrictions as part of negotiations. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using US technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center and CSCC. Cadence and its subsidiary Cadence China exported electronic design automation tools at least 56 times to CSCC between 2015 and 2020, with certain Cadence China employees facilitating business with NUDT while knowing CSCC was an alias for the restricted university, court papers said. They also transferred EDA tools to Phytium Technology Co, a semiconductor company closely associated with NUDT, until 2021, without obtaining required licenses, according to court papers. Cadence agreed to plead guilty to one count of conspiracy to commit export control violations. It is expected to be on probation for three years, meaning it cannot commit any further violations and has to fulfill its obligations under the plea agreement. The $140 million covers criminal penalties, forfeiture and a civil penalty imposed by the Commerce department. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Cadence was run for over a decade by Lip-Bu Tan, a Malaysian-born Chinese American business executive appointed chief executive of Intel in March. Tan was CEO of Cadence from 2008 through December 2021, which includes the period the sales took place, and was executive chairman until May 2023. The US investigation into Cadence, which began more than four years ago, involved 'historical sales by Cadence to customers in China,' according to a company filing. Cadence received a subpoena from the US Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Entities are placed on the restricted trade list, formerly known as the Entity List, for activities deemed contrary to US national security or foreign policy interests. US companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Electronic design automation tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the US believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17 percent in 2023, amid regulatory developments and geopolitical tensions. (Reuters)
Time of India
29-07-2025
- Business
- Time of India
Cadence nears deal to pay over $100 million to US for China sales, sources say
Cadence Design is expected to pay over $100 million to the U.S. government as part of a deal to resolve an investigation into sales of its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, according to two people familiar with the matter. Cadence is accused of illegally selling chip design technology to front companies representing China's National University of Defense Technology, the sources said. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science Operations Management Public Policy PGDM Cybersecurity Technology healthcare Others Digital Marketing Leadership Artificial Intelligence Healthcare Design Thinking Degree Finance Data Analytics Product Management Management CXO Project Management Data Science MCA MBA others Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to U.S. Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence, which said earlier this year it began settlement discussions with the U.S. over sales to China in December, did not immediately respond to a request for comment, nor did NUDT. The Justice Department declined immediate comment. The Commerce Department did not immediately respond to a request for comment. Live Events The potential deal, which comes as the U.S. and China meet for new trade talks, shows the U.S. is still willing to enforce U.S. export controls on China, even as it relaxes some of the restrictions as part of negotiations. The sources said the deal is not finalized. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using U.S. technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center, and CSCC. The U.S. investigation into Cadence, which began more than four years ago, involves "historical sales by Cadence to customers in China," according to a company filing. Cadence received a subpoena from the U.S. Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Cadence sold its EDA technology to NUDT through the CSCC or Central South CAD Center alias about 50 times between 2015 and 2020, according to one source familiar with the probe. Chip developer Tianjin Phytium Information Technology, which traces its roots to NUDT, also has been tied to Cadence sales for the university, another source said. Phytium was added to the restricted trade list in 2021. It did not immediately respond to a request for comment. Several employees at a Chinese subsidiary of Cadence were terminated over the sales, one of the sources said. Entities are placed on the restricted trade list, formally known as the entity list, for activities deemed contrary to U.S. national security or foreign policy interests. U.S. companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Cadence will hold a call about its second-quarter financial results at 2 p.m. Pacific Time (2100 GMT) on Monday. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Electronic design automation (EDA) tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the U.S. believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17% in 2023, amid regulatory developments and geopolitical tensions.
South China Morning Post
29-07-2025
- Business
- South China Morning Post
Cadence to plead guilty, pay US$140 million to US for sales to Chinese military university
Cadence Design agreed to plead guilty and pay more than US$140 million to resolve US charges for selling its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, the US Justice Department said on Monday. Cadence is accused of violating export controls by illegally selling chip design software and hardware to front companies representing China's National University of Defence Technology (NUDT). NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to US Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence noted a charge related to the legal proceedings in its quarterly results, also released on Monday. In a filing with the US Securities and Exchange Commission, the company said it was 'pleased' to reach settlements with the justice and commerce departments. Cadence shares rose 6.5 per cent after it posted the news and its quarterly results. The National University of Defence Technology in Changsha, China's central Hunan province. Photo: Wikipedia The deal, which comes as the US and China meet for new trade talks, shows the US is still willing to enforce export controls on China, even as it relaxes some of the restrictions as part of negotiations.
