Seagate fined $300 million for shipping 7.4 million hard drives to Huawei

Hard Drive Maker Seagate Announces Its Cutting 3,000 Jobs — Photo by Justin Sullivan/Getty Images

Computing storage manufacturer Seagate has agreed to pay a $300 million penalty imposed by the US Department of Commerce (DOC) for shipping over $1.1 billion worth of hard disk drives to Huawei, violating export control restrictions. An investigation by Commerce’s Bureau of Industry and Security (BIS) determined that Seagate shipped 7.4 million hard drives to Huawei between August 2020 and September 2021 without obtaining an export license, despite a rule introduced in August 2020 that restricts sales to the Chinese company.

The $300 million penalty is the largest fine ever imposed by the BIS that isn’t tied to a criminal case. The BIS says it’s more than double Seagate’s profits in selling the hard drives.

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