Connect with us

Hi, what are you looking for?

Electronics

Seagate settles with U.S. for delivering $1.1 billion hard drives to Huawei

Photo; HUAWEI

On Wednesday, the U.S. Department of Commerce announced a $300 million settlement with Seagate Technology Holdings (STX.O) for selling over $1.1 billion in hard disk drives to Huawei in violation of export control restrictions.

Seagate supplied the disks to Huawei between August 2020 and September 2021 despite a 2020 order that barred Huawei from buying foreign products created using U.S. technology. Due to national security and foreign policy concerns, Huawei was placed on the Entity List in 2019 to reduce U.S. product sales to the corporation.

Washington has taken several measures to prevent China from acquiring advanced technologies that could aid its military or abuse human rights.

The Commerce Department claimed Seagate was Huawei’s sole hard drive supplier for approximately a year after the 2020 regulation took effect, shipping 7.4 million drives.

The department said Huawei stopped receiving hard drives from the other two major vendors after the 2020 rule took effect. The U.S. Senate Commerce Committee reported in 2021 that Western Digital and Toshiba are the other two.

“Its competitors had stopped selling to them… However, Seagate continued sending hard disk drives to Huawei,” said Commerce Department assistant secretary for export enforcement Matthew Axelrod. “Today’s action is the consequence.”

Because they weren’t built with U.S. equipment, Seagate’s foreign-made drives weren’t subject to U.S. export controls.

In an order announced Wednesday, the government said Seagate misinterpreted the law to require examination of only the last stage of its production process.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.
SUBSCRIBE

You May Also Like

TECH

Elon Musk’s influence on U.S. government technology sparks controversy, as Musk-inspired strategies disrupt the federal tech sector. Unorthodox practices, weakened oversight, and dismantled DEIA...

BUSINESS

Elevate your home with Design Within Reach’s winter sales event, featuring up to 60% off clearance items, flash sales, and an exclusive "EXTRA20" promo...

Gadgets

Samsung's February 2025 deals offer major savings on cutting-edge tech, including 30% discounts for community heroes, bundle offers like $4,500 off a 98-inch QLED...

APPS

Amazon Music Unlimited will raise subscription prices in early 2025, citing enhanced features like audiobook borrowing and a personalized year-in-review tool. Prime members face...

SUBSCRIBE

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.