Type to search

Firm Smuggled 53,000 Banned US Chips to China – BusinessKorea

Custom officials say integrated circuit chips, classed as strategic items and worth $11.6 million, were funneled to mainland via a South Korean company; firm’s executives now face prosecution

China's flag is seen with a computer chip
China's flag is seen with a computer chip in this Reuters image.


Customs officials in South Korea have arrested the executives of a company that ran a chip smuggling operation which saw 53,000 integrated circuit (IC) chips worth $11.6 million sent into China from August 2020 to August 2023, according to a report by Business Korea, which said the executives bought chips from a well-known US semiconductor company supposedly for domestic use but relayed the IC chips to China via air freight that was not declared to customs.

The company, which was not identified, got around restrictions on the import and export of the chips by getting local telecom equipment firms to import more IC chips than they needed so the excess could be repacked in small quantities and sent as ‘sample products’ to China without export permission, the report said, adding that the chips are designated as strategic items because they can convert analog signals to digital in communication relays and used in the making of weapons of mass destruction.

See the full report: Business Korea.



Canon Says New ‘Stamp’ Machine Will Slash Chipmaking Costs – FT

US Plans New Rules for Cloud Firms to Cut Off China AI Access

White House: US, China Need to Collaborate on AI Safety – Inc

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


AF China Bond