Preliminary charges have been filed against individuals associated with a leading chip supplier, Ommic, amid suspicions that the company's advanced chip technology, possibly with military applications, was illegally smuggled to China and Russia. The investigation indicates that the alleged activities were carried out to bypass international sanctions and export controls.
The Paris-based semiconductor manufacturer, Ommic, which is now owned by American company Macom Technology Solutions Holdings Inc., has been under scrutiny by France's national prosecution service specializing in arms proliferation cases. The probe was initiated in March and is currently investigating potential illegal exports and forgery, among other suspected crimes.
According to an anonymous French judicial official, two Chinese citizens and two French individuals have been placed under formal investigation. This step suggests that the magistrates have significant evidence regarding possible criminal activities, but they require further time to conduct a thorough investigation.
The two French citizens are facing preliminary charges for allegedly handing over protected know-how to a foreign power. However, specific details about the case have not been disclosed due to secrecy laws governing ongoing probes.
Le Parisien, a French newspaper, has reported that investigators have uncovered nearly €12 mn worth of suspected technology exports. The company's French manager is suspected of personally delivering chips to Russian clients. Additionally, it is alleged that products were exported to Chinese armament manufacturers using forged paperwork.
The newspaper further revealed that a Chinese businessman with ties to China's defense industry acquired a majority stake in Ommic in 2018. French authorities suspect that the Chinese investor intended to transfer French technology, particularly Ommic's specialized semiconductor manufacturing process, to China.
In February, Macom Technology Solutions Holdings Inc. announced its acquisition of Ommic for €38.5 mn. During the investigation, French judicial authorities reportedly removed the Chinese investor from Ommic's ownership and temporarily placed the company under state control before its sale.
Macom Technology Solutions Holdings Inc. emphasized that Ommic's portfolio of chips and design know-how would bolster its position in the telecommunications, industrial, aerospace, and defense markets.
The investigation remains ongoing, and authorities are determined to uncover the full extent of the alleged illegal technology transfers and hold those involved accountable for their actions. The case has raised concerns about the illicit movement of advanced chip technology to countries that may use it for unauthorized purposes, potentially threatening global security and stability.
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