Chinese nationals accused of conspiring to export semiconductor technology from Santa Rosa firm
Federal officials this week announced the unsealing of a December 2020 indictment that charged two Chinese nationals with illegally conspiring to export advanced semiconductor technology to a manufacturer in China.
The defendants were identified as Lin Chen, 44, and Han Li, aka Li Han Anson, 64, both of the People's Republic of China. Chen was arrested in Chicago on Wednesday and is in custody. Authorities believe Li to be in China, according to the U.S. Department of Justice.
Between 2015 and 2018, Chen and Li allegedly schemed to purchase, through an intermediary, equipment that was subject to export licensing controls. They planned to ship the equipment to Chengdu GaStone Technology Company in China.
Since 2014, GaStone has been named to a U.S. Department of Commerce list of restricted entities. Sales to companies on the list are subject to strict licensing, disclosure and export controls under federal law designed to prevent advanced chip technology from being obtained by Chinese companies.
This is not the first time that GaStone has been found to be the recipient of prohibited sales of American technology. In 2021, Yi-Chi Shih, a Hollywood Hills electrical engineer who illegally exported "monolithic microwave integrated circuits" used in high-power silicon chips with military applications, was sentenced to 63 months in federal prison.
Shih was the president of GaStone and the company was building a MMIC manufacturing facility in Chengdu.
The equipment that Chen and Li sought to export was described by authorities as a "DTX-150 Automatic Diamond Scriber Breaker" sold by Dynatex International of Santa Rosa. According to federal officials, the machine is used to cut thin semiconductors, also known as silicon wafers.
Dynatex was founded in 1958 and designs and sells equipment used in the process of creating silicon chips.
The indictments are part of a broader U.S. effort to prevent China from obtaining technology that can be used in the development of cutting-edge semiconductors. Semiconductors have emerged as a technology of vast importance to military and industrial applications throughout the world. Control of the most advanced chips and chip technology can lend countries great geopolitical advantage.
"Stopping the illegal export of U.S. technology to China is one of the FBI's highest priorities. We will aggressively pursue anyone who violates export control laws designed to protect our national and economic security." said FBI Special Agent in Charge Robert Tripp.
The indictments contain four counts, two of which carry a maximum penalty of 20 years imprisonment; the other two, five and 10 years, respectively. The counts also carry the possibility of fines up to $1 million.
