California Semiconductor Company Settles Charges Regarding Illegal Exports and
Reexports of National Security-Controlled Items

WASHINGTON, D.C. –The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced today that Maxim Integrated Products, Inc., a semiconductor manufacturer based in Sunnyvale, CA, has agreed to pay a $192,000 civil penalty to settle allegations that it committed 34 violations of the Export Administration Regulations (EAR) involving the export and reexport  of national security-controlled integrated circuits and related components to the People’s Republic of China, Estonia, Russia, and the Ukraine as well as deemed export violations involving Iranian and Chinese nationals. 

“An effective compliance program requires continuous vigilance and review,” said Darryl W. Jackson, the Assistant Secretary of Commerce for Export Enforcement.  “Companies need to ensure that their compliance programs are being adhered to and that they are updated when the business environment changes.”

Three of the 34 charges involve deemed export violations, including one knowing deemed export violation, when Maxim released controlled technology for the development of electronic components to an Iranian-national employee and Chinese-national employee without the required BIS licenses.  Maxim applied for a deemed export license for release of controlled technology to the Chinese national, but failed to restrict his access to the technology with the license application was under review.   

The other 31 charges stemmed from unlicensed exports and reexports of national security-controlled integrated circuits and related components made between June 2002 and September 2005 to the People’s Republic of China, Estonia, Russia, and the Ukraine. 

Assistant Secretary Jackson commended the San Jose Field Office for its efforts in this investigation. 

BACKGROUND

BIS controls the export and re-export of dual-use commodities, technology, and software for reasons of national security, foreign policy, nuclear nonproliferation, chemical and biological weapons nonproliferation, regional stability, and short supply. A deemed export is defined as any release of technology or source code subject to the EAR to a foreign national in the United States. Such release is deemed to be an export to the home country or home countries of the foreign national. This deemed export rule does not apply to persons lawfully admitted for permanent residence in the United States and does not apply to persons who are protected individuals [persons granted political asylum] under the Immigration and Naturalization Act. Criminal penalties and administrative sanctions can be imposed for violations of the EAR.

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