The U.S. Department of Commerce announced on Wednesday (July 2) that Alpha and Omega Semiconductor Limited, a U.S. company, has agreed to pay $4.25 million to settle a lawsuit brought by the department for exporting products to Huawei Technologies Co., Ltd. of China in violation of export control regulations.
In 2019, Alpha and Omega Semiconductor Limited (AOS) transferred 1650 power controllers, intelligent power modules, and related accessories to Huawei without authorization, according to the order. That same year, the Commerce Department placed Huawei on the U.S. trade restriction list.
The order stated that even though these items were designed and produced overseas, they are subject to U.S. export control regulations because AOS exported them from the U.S. Suppliers must obtain a license if they supply entities on the U.S. trade restriction list.
Earlier this year, AOS disclosed in filings with the U.S. Securities and Exchange Commission (SEC) that U.S. authorities have been investigating its transactions since 2019. The filings indicated that the Justice Department ended its investigation in January 2024 without pressing charges, but the Commerce Department’s civil investigation is ongoing.
On April 16, 2025, AOS received a letter from the Commerce Department accusing it of violating export control regulations and held a meeting to discuss potential resolutions.
Headquartered in Sunnyvale, California, AOS operates its business in the U.S. and Asia. The company also has a wafer manufacturing facility in Hillsboro, Oregon.
In 2020, the U.S. expanded the Entity List targeting Huawei to enhance restrictions on exporting foreign-produced products to the company.
(Reference: Reuters)