San Jose Firm Admits to Violating U.S. Export Controls, Fueling PRC Nuclear Simulations
Cadence Design Systems Inc., a leading chip design firm, will plead guilty and pay over $140 million for illegally exporting semiconductor tools to China’s National University of Defense Technology (NUDT), a military-linked institution, the Justice Department announced.
From 2015 to 2021, Cadence and its Shanghai subsidiary supplied NUDT with sensitive electronic design automation (EDA) software via front companies, despite NUDT’s 2015 U.S. Commerce Department blacklist for developing supercomputers aiding nuclear and military simulations.
The plea includes $118 million in criminal penalties and $95 million in civil fines, with credits for overlapping payments.
Cadence’s actions, including concealing exports and transferring contracts to another restricted entity, Phytium, underscore U.S. concerns over technology leaks bolstering China’s military.
The case, prosecuted in California, highlights Silicon Valley’s role in safeguarding national security.
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