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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.

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.