Alpha and Omega Semiconductor (AOS) has agreed to pay a $4.25 million penalty following allegations that it unlawfully sent products to China’s Huawei Technologies, according to a U.S. Department of Commerce order released Wednesday.
The department determined that AOS violated export laws in 2019 by shipping approximately 1,650 power controllers, smart power stages, and related components to Huawei without obtaining the required licenses.
That same year, Huawei was added to the U.S. Entity List, which restricts trade with certain foreign organizations.
Although the products in question were designed and manufactured outside the U.S., they fell under U.S. export rules due to their shipment origin being the United States.
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Ongoing Scrutiny Ends in Civil Settlement
AOS confirmed that it had been under federal scrutiny for its Huawei-related dealings since 2019. In early 2024, the U.S. Department of Justice ended its inquiry without filing criminal charges.
However, the Commerce Department continued to pursue a civil case.
According to a company filing with the Securities and Exchange Commission (SEC), the agency issued a letter on April 16, 2025, outlining alleged violations. Discussions between AOS and Commerce officials followed shortly thereafter.
The company emphasized that the resolution of this case does not interfere with its regular business activities.
“This resolution does not impact AOS’s ongoing business operations and brings to an end the U.S. government’s five-year-plus investigation,” the company stated. “AOS is pleased to bring this matter to a close with only limited administrative export control charges.”
Based in Sunnyvale, California, AOS has operations in both the U.S. and Asia. It also runs a semiconductor fabrication plant in Hillsboro, Oregon, which supports its global production network.
U.S. Tightens Oversight on Technology Shipments
The Commerce Department’s case also highlights Washington’s tightening grip on technology exports to entities it deems as national security threats.
In 2020, the U.S. broadened the scope of its restrictions against Huawei, enabling the government to prevent even foreign-manufactured goods from reaching the Chinese tech giant if U.S. technology or components were involved.
While the financial penalty marks a significant chapter in the case, the resolution suggests a deliberate attempt by AOS to cooperate with regulators and settle the matter without prolonged litigation or reputational damage.
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