Federal authorities this week announced the unsealing of a December 2020 indictment charging two Chinese nationals with conspiracy to illegally export advanced semiconductor technology to Chinese manufacturers.
The defendants were identified as Lin Chen, 44, of the People's Republic of China, and Li Han Anson, 64, also known as Han Li. Chen was arrested in Chicago on Wednesday and remains in custody. According to the U.S. Department of Justice, authorities believe Li is in China.
Between 2015 and 2018, Mr. Chen and Mr. Li allegedly planned to purchase equipment subject to export licensing regulations through intermediaries. They planned to ship the device to Chengdu GaStone Technology Company in China.
Since 2014, GaStone has been listed on the U.S. Department of Commerce's Restricted Entity List. Sales to companies on the list are subject to strict licensing, disclosure and export controls under federal law aimed at preventing Chinese companies from obtaining advanced chip technology.
This is not the first time GaStone has been found to be the recipient of a prohibited sale of US technology. In 2021, Hollywood Hills electrical engineer Yi Qi Shi was sentenced to 63 months in federal prison for illegally exporting “monolithic microwave integrated circuits” used in high-power silicon chips for military applications.
Mr. Shih was president of GaStone, which was building an MMIC manufacturing facility in Chengdu.
The equipment Chen and Lee were trying to export was a DTX-150 automatic diamond scriber breaker sold by Dynatex International Inc. of Santa Rosa, authorities said. Federal officials said the machine is used to cut thin semiconductors, also known as silicon wafers.
Founded in 1958, Dynatex designs and sells equipment used in the silicon chip manufacturing process.
The charges are part of a broader U.S. effort to block China from obtaining technology that could be used to develop cutting-edge semiconductors. Semiconductors have emerged as a critically important technology for military and industrial applications around the world. Controlling cutting-edge chips and chip technology can give countries significant geopolitical advantages.
“Preventing the illegal export of U.S. technology to China is one of the FBI's top priorities. We aggressively pursue those who violate export control laws to protect our national and economic security.” FBI Special Agent in Charge Robert Tripp said.
The indictment contains four counts, two of which carry a maximum penalty of 20 years in prison. The remaining years are 2, 5, and 10 years. The investigation could result in fines of up to $1 million.
