💰 EXCLUSIVE U.S. alleges Seagate broke export rules to sell Huawei hard drives -source

TL;DR

Oct 26 (Reuters) - Seagate Technology Holdings said in a filing on Wednesday the U.S. government has warned the company that it may have violated export control laws by providing hard disk drives to a customer that a source familiar with the situation identified as Huawei Technologies(HWT.UL).At issue is a U.S. regulation that governs the way certain foreign-made items destined for Huawei become subject to U.S. export regulations.Seagate's view is that its foreign-made hard drives are not subject to the restriction, the source told Reuters, because they are neither the direct product of any U.S. semiconductor technology or software nor of any equipment that itself is the direct product of any U.S. semiconductor technology or software.However, the source said, the Commerce Department’s proposed charges are based on an interpretation that foreign-made items are subject to the rule if equipment that is the direct product of U.S. semiconductor technology or software was used to produce any component of the end-item, no matter how far removed in the production process.Republicans on the U.S. Senate Commerce Committee issued a report last October that found that Seagate had likely shipped restricted products to Huawei for as long as a year, giving it a competitive advantage over Toshiba(6502.T) and Western Digital (WDC.O), the other primary suppliers of hard disk drives, who said they had ceased shipments to Huawei after the new rule took effect in 2020."

Like summarized versions? Support us on Patreon!