California Semiconductor Company Says It Is Under Investigation for Huawei Shipments
California-based Alpha and Omega Semiconductor is being investigated by the Justice Department for export control violations relating to shipments to Huawei, the company said in a Feb. 5 press release. The company said it has been ordered by the Commerce Department to stop all shipments to Huawei and is working with the agency to “resolve this issue.” The semiconductor company has an export control compliance program in place and is committed “to comply fully” with U.S. export laws, but said it expects revenue hits due to penalties “incurred in connection with the investigation” and by the “Huawei shipment interruption.”
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In a statement, the company’s chairman and CEO, Mike Chang, said the company also expects to lose business due to the coronavirus outbreak in China, but said all other sales not involving Huawei are expected to continue. Chang said the company is “fully committed to moving forward with our growth plans and navigating the headwinds and volatility we are facing in the near-term.” The Justice Department declined to comment. Commerce did not comment.