Chinese Man Pleads Guilty to Illegally Exporting Radiation-Hardened Computer Circuits
A Chinese national and resident of Oakland, Calif., pleaded guilty Sept. 3 to conspiring to illegally export radiation-hardened computer memory circuits from the U.S. to China, according to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Philip He, an employee at Sierra Electronic Instruments, bought 312 radiation-hardened circuits, valued at almost $550,000, from a Colorado manufacturer. ICE said the circuits are categorized as defense articles within the International Trafficking in Arms Regulations, and the exporting of such articles requires licensing from the State Department’s Directorate of Defense Trade Controls. According to the indictment, He provided false certification to the Colorado manufacturer indicating the purchased circuits were for end-use in the U.S.
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On Dec. 11, 2011, He met with two other men at the Port of Long Beach in front of a docked ship bearing a Chinese flag. He had concealed 200 circuits in plastic infant formula containers placed inside five boxes sealed and labeled as “milk powder.” The ship, registered to Zhenhua Port Machinery Company, had arrived from Shanghai, China, and was scheduled to return Dec. 15, 2011.
For conspiring to violate the Arms Export Control Act (AECA), He now faces no more than five years in federal prison and fine of up to $250,000, ICE said. U.S. Attorney John Walsh said the AECA provided “specific laws designed to protect sensitive American technology” such as the computer chips “from getting into the wrong hands overseas.”