U.S. semiconductor design company fined $140 million over China dealings — sold software to a military institution thought to be conducting nuclear explosion simulations

China
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Cadence Design Systems, one of the leading electronic design automation (EDA) firms in the U.S., has pleaded guilty to charges, saying that it sold its chip design software to the National University of Defense Technology, located in Hunan Province in South-Central China. According to Reuters, this institution is believed to be working on nuclear explosion simulations, linking it to China’s nuclear weapons research and development efforts.

The university has been on the U.S. Department of Commerce’s Entity List — a list of companies, institutions, and individuals that the White House deems to be operating contrary to its national security and foreign policy interests — since 2015. Furthermore, its affiliates and aliases, including Hunan Guofang Keji University, Central South CAD Center, and CSCC, were also added to the restricted list in 2019 and 2022, respectively.

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Jowi Morales
Contributing Writer

Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

  • A Stoner
    Shouldn't someone be in prison? Fines are not going to fix this. Put people in prison and it will stop happening.
    Reply
  • derekullo
    In their defense, China paid them a lot of money for the chips!
    Reply
  • John Nemesh
    1st rule of capitalism. Never let national security get in the way of making a buck! Right Jensen?
    Reply
  • virgult
    A Stoner said:
    Shouldn't someone be in prison? Fines are not going to fix this. Put people in prison and it will stop happening.
    Aaaaand the CEO of Cadence in that period was........
    (Talking about killing two birds with one stone, much)
    Reply
  • botmfeedr
    A Stoner said:
    Shouldn't someone be in prison? Fines are not going to fix this. Put people in prison and it will stop happening.
    Corporate America has the freedom of speech to influence elections because corporations are considered people,, but no individuals are ever arrested when a corporation pleads guilty to breaking the law. I'm not a judge, much less SCOTUS, but I'll never understand how our system of government became so perverted. We have failed in this experiment of democracy.
    Reply
  • newtechldtech
    A Stoner said:
    Shouldn't someone be in prison? Fines are not going to fix this. Put people in prison and it will stop happening.
    nope . because China at the moment is not at war with USA. avoiding sanctions is not a crime punishable by jail.
    Reply
  • jp7189
    virgult said:
    Aaaaand the CEO of Cadence in that period was........
    (Talking about killing two birds with one stone, much)
    It does seem fortuitous that lip bu tan jumped ship just before this news broke.
    Reply