Wednesday, July 30, 2025
The company pleaded guilty to one count of conspiracy to commit export control violations, requiring it to pay $140 million in forfeitures, civil, and criminal penalties. Aside from that, the court is also expected to put it under probation for three years, preventing it from doing business with sanctioned institutions at the risk of even harsher penalties.
The U.S. has lifted a ban on the general export of EDA tools, including those from Cadence, earlier this month. However, this lifting only makes it readily available to institutions that aren’t included in the Entity List. So, any company that wants to do business with NUDT and its affiliates must still acquire a proper export license from the Federal government.
Cadence, so far, is the biggest company to have pleaded guilty to breaking American sanctions on Chinese companies. However, it’s not the only one facing scrutiny. Nvidia, the current world leader in AI semiconductors, has seen billions of dollars’ worth of its AI chips smuggled into China. While its CEO, Jensen Huang, continues to deny that its chips are being diverted, there is a thriving black market in China for banned GPUs like the B200 and RTX 5090.
The U.S. is tightening its grip on export controls, even pressuring its allies like Singapore and Malaysia to clamp down on smuggling rings. However, the massive demand in China makes smuggling AI technologies quite lucrative, making it nearly impossible to stop completely.
By: DocMemory
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