In a recent development that has raised concerns over arms proliferation and technology transfer, French authorities are conducting a thorough investigation into the suspected smuggling of advanced chip technology to China and Russia.
The probe centers around Ommic, a prominent semiconductor manufacturer based in the Paris region and currently owned by an American company. Preliminary charges have been filed against two Chinese citizens and two French individuals, shedding light on a complex web of alleged illegal exports, forgery, and other suspected crimes.
Ommic Under the Scanner
The investigation into Ommic’s activities was initiated by France’s national prosecution service specializing in arms proliferation cases. Now led by magistrates focusing on illegal exports, the probe is aimed at uncovering potential sanctions and export controls violations.
Four individuals, two from France and two from China, have been placed under formal investigation since March, indicating the presence of substantial evidence that requires further scrutiny.
The Allegations
According to a French judicial official who spoke anonymously due to secrecy laws surrounding magistrates’ probes, two of the individuals are facing preliminary charges of providing protected know-how to a foreign power.
The details of the investigation have not been fully disclosed, but it is believed that Ommic’s French manager played a crucial role in personally delivering chips to Russian clients. Furthermore, the company’s products were allegedly exported to Chinese armament manufacturers using forged paperwork.
Chinese Investment and Suspicion
The investigation also shines a spotlight on the involvement of a Beijing-based Chinese businessman with ties to China’s defense industry. This individual acquired a majority stake in Ommic in 2018, leading France’s counter-espionage agency to suspect an intention to transfer French technology, particularly in the semiconductor manufacturing process, to China.
As part of the ongoing probe, French judicial authorities took significant action by stripping the Chinese investor of his stake in Ommic and temporarily placing the company under state control before its subsequent sale.
The Acquisition by Macom Technology Solutions Holdings Inc.
In February, Macom Technology Solutions Holdings Inc., a semiconductor supplier with its headquarters in Lowell, Massachusetts, unveiled its acquisition of Ommic at a price of 38.5 million euros ($42.8 million).
The purchase aimed to bolster Macom’s position in critical sectors such as telecommunications, industrial, aerospace, and defense markets. However, the ongoing investigation has cast a shadow of uncertainty over the implications of this acquisition.
Unraveling Global Smuggling Implications
As the French investigation continues to unfold, the alleged smuggling of advanced chip technology to China and Russia has become a matter of international concern. The suspicions of illegal exports and technology transfer underscore the importance of strict export controls and vigilance in the semiconductor industry.
The outcomes of the investigation and its potential impact on Ommic’s future and Macom Technology Solutions remain uncertain, prompting industry stakeholders to closely monitor the situation. Authorities are expected to collaborate with international partners to ensure that advanced technologies with possible military applications are safeguarded and used responsibly.
