Seagate to Settle $300 Million Penalty for Supplying Huawei with 7 Million Hard Drives

Seagate Technology Holdings has agreed to pay a $300 million penalty in a settlement with U.S. authorities for shipping over 7 million hard disk drives worth more than $1.1 billion to China’s Huawei in violation of U.S. export control laws, the Department of Commerce said on Wednesday.

The company shipped these hard drives from 2015-2017 without obtaining the required licenses from the Bureau of Industry and Security (BIS). Seagate was aware that it needed such licenses but failed to apply for them, according to BIS’s investigation into the matter.

As part of its settlement agreement with BIS, Seagate will implement an enhanced compliance program and cooperate fully with future investigations by US authorities regarding potential violations related to exports or reexports involving Huawei Technologies Co., Ltd., or any other persons subject to US export controls and sanctions regulations administered by BIS or other agencies within the Department of Commerce. The company also agreed not to accept orders directly from Huawei until June 30th, 2021 as part of their agreement with BIS, which they have committed themselves to adhere to going forward.

This case serves as an important reminder that companies must comply strictly with all applicable federal laws when exporting goods abroad – especially those concerning sensitive technologies like computer hardware components–and take measures necessary to ensure full compliance at all times.