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yesterday

Cadence Pleads Guilty to Export Violations, Accepts $140.6 Million Penalty

Pending judicial approval, the deal enforces three years of probation for Cadence over illegal exports to China’s National University of Defense Technology.

The logo of Cadence Design Systems is pictured outside the company's offices in San Jose, California, U.S., January 31, 2020. Picture taken January 31, 2020. REUTERS/Stephen Nellis/File Photo
China
FILE – The Department of Justice seals is seen during a news conference at the DOJ office in Washington, May 16, 2023. (AP Photo/Jose Luis Magana, File)

Overview

  • Cadence admitted to conspiring to violate U.S. export controls by supplying advanced chip-design software and hardware to front companies tied to NUDT.
  • The settlement calls for a $140.6 million payment covering criminal fines, forfeiture and penalties imposed by the Justice Department and Commerce’s Bureau of Industry and Security.
  • Court filings reveal that between 2015 and 2020 Cadence and its China subsidiary shipped electronic design automation tools to aliases of the military-run university without required licenses.
  • Under the three-year probation, Cadence must adhere to strict compliance measures and is barred from further export-control breaches.
  • The plea, which follows subpoenas issued in February 2021 and November 2023, prompted Cadence to update its financial outlook and awaits a federal judge’s sign-off.