BIS Needs to Better Prevent Illegal Tech Transfers, Lawmaker Says
The Bureau of Industry and Security needs to “answer to Congress immediately” if U.S. software company Synopsys was able to illegally export semiconductor design software to blacklisted Chinese companies, Rep. Michael McCaul, R-Texas, said. McCaul -- referencing a report this week that said BIS is investigating Synopsys for potentially transferring technology to China’s HiSilicon and Semiconductor Manufacturing International Corporation (see 2204140057) -- said the agency needs to do a better job of preventing illegal exports on the front end.
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“Companies are either willfully breaking the law or BIS’ policies are so riddled with holes that they are failing to fulfill the Department of Commerce’s national security mission,” McCaul said April 14. “Rather than calling out bad behavior after technology is transferred, we need to keep it out of China and stop certain joint ventures before they damage our national and economic security.”
Snyopsys on April 15 confirmed it’s being investigated by BIS and said it’s “cooperating” with the agency. A spokesperson said the company received a subpoena from BIS “requesting information” in December. “A number of companies have received similar inquiries and it’s not surprising, given the current environment,” the spokesperson said. A Commerce spokesperson said the agency “vigorously investigates allegations” of export control violations.
McCaul, who was selected earlier this month for the conference committee that will seek a compromise on the Senate and House China packages (see 2204070041), said he will prioritize export controls issues in negotiations. “One of my priorities as a China legislation conferee will be to address these outbound investment and technology transfer issues that are core to our competition with China,” he said.