Because of Huawei: USA impose record fine
Seagate has to pay a severe fine for its dealings with the Chinese manufacturer Huawei. The hard drive maker has ignored US government sanctions for over a year and shipped millions of products to Huawei. Now Seagate has accepted a record penalty because of it.
Seagate fined $300 million
Seagate, one of the world’s largest manufacturers of hard drives, needs a Record fine of $300 million pay. The reason: Seagate had supplied the Chinese manufacturer Huawei with hard drives from August 2020 to September 2021, although Huawei was and is on the US embargo list.
Seagate did not want to get involved in a court hearing. Instead you have them penalty acceptedjust as intended by the US Department of Commerce.
However, Seagate does not want to know anything about an admission of guilt. Furthermore, the manufacturer takes the view that no export restrictions were violated. After all, they are Products not made in the USA been. However, the responsible Bureau of Industry and Security (BIS) sees things differently and points out that Seagate is a US manufacturer.
The BIS estimates that Seagate has around 7.4 million hard drives valued at $1.1 billion sold to Huawei for a profit of nearly $150 million. The fines together add up to a minus of 150 million in Seagate’s coffers. Huawei probably bought the hard drives for its cloud business.
We recently looked at the special Watch Buds from Huawei:
Seagate halts sale to Huawei
As part of the agreement, Seagate has committed, among other things, not to supply hard drives to Huawei for the next five years. In addition, the manufacturer’s shops are now one multi-year compulsory examination subject. The fine will be paid in the form of $15 million per quarter (source: Seagate).
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