Alpha and Omega Semiconductor (AOS), a California-based chip company, has agreed to pay $4.25 million to resolve allegations by the U.S. Department of Commerce that it violated export control regulations by shipping restricted components to Huawei Technologies in China.
The settlement, announced in a department order posted Wednesday, closes a civil investigation that has lasted more than five years. AOS said in a statement that the resolution imposes only “limited administrative export control charges” and would not affect its ongoing business operations.
“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 noted.
Background on the Export Restrictions
Although the items in question were foreign-designed and manufactured, they were subject to U.S. export control rules because they were exported from the United States. Under the U.S. Entity List restrictions, suppliers are required to obtain government licenses before exporting certain goods and technology to listed companies.
Huawei Technologies was added to the U.S. Commerce Department’s Entity List in 2019 amid concerns over national security and trade tensions with China. The move effectively restricted U.S. companies—and companies using U.S. technology—from selling certain products to Huawei without approval.
In 2020, the United States expanded these restrictions to further limit Huawei’s ability to acquire foreign-made items developed with U.S. technology or software.
Details of the Violation
According to the Commerce Department’s order, AOS exported approximately 1,650 power controllers, smart power stages, and related accessories to Huawei in 2019, the same year the Chinese company was added to the restricted trade list. The shipments were made without the required export licenses, constituting prohibited conduct under U.S. law.
While the items themselves were not designed in the U.S., the department found that their export from U.S. soil brought them under its regulatory jurisdiction. Such rules are designed to prevent sensitive technologies from reaching foreign entities that Washington deems a threat to U.S. national security or foreign policy interests.
Parallel Investigations by U.S. Authorities
AOS’s transactions with Huawei drew scrutiny starting in 2019. According to an SEC filing earlier this year, the U.S. Justice Department had also investigated the company but closed its probe in January 2024 without filing criminal charges.
The civil investigation by the Commerce Department, however, remained active. On April 16, 2025, AOS received a formal letter from Commerce alleging export control violations. That communication led to discussions between the company and the agency, eventually resulting in this settlement.
Company Profile and Operations
Alpha and Omega Semiconductor is headquartered in Sunnyvale, California, and has a global footprint, with operations in both the United States and Asia. It also operates a wafer fabrication facility in Hillsboro, Oregon.
The company specializes in designing, developing, and supplying power semiconductors, which are widely used in computing, consumer electronics, and industrial applications.
Moving Forward
With the settlement finalized, AOS has indicated that it considers the matter closed and does not expect any significant impact on its ongoing operations.
The case highlights the increasingly complex regulatory environment that U.S. technology companies face when doing business with China and other countries subject to export restrictions. Firms are under growing pressure to navigate compliance carefully as Washington expands controls over sensitive technologies.
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