Huge fine for Seagate after sanctions violation

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The fine is paid over five years, $15 million per quarter.

Seagate sold hard drives to the Chinese giant between August 17, 2020 and September 29, 2021.

The US blacklisted Huawei in 2020 as a threat to national security and a potential espionage tool for the Chinese government, and stopped US companies from selling components to the company.

“While we believed we were in compliance with all relevant export control laws at the time of the hard drive sale in question, we decided it was best to cooperate with BIS and resolve this matter,” CEO Dave Mosley said in a statement. statement.

According to BIS sold 7.4 million hard drives to Huawei without authorization worth $1.2 billion. Seagate continued to supply even though two other competitors stopped doing business with Huawei.

“Today’s action is the consequence: the largest single administrative settlement in our agency’s history,” Matthew Axelrod of the BIS said in a statement.

According to the BIS, the $300 million fine is roughly twice the profit Seagate made on the sale.

The news was revealed the day before Seagate is to present its interim report.

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