French Magistrates Charge Chinese and French Nationals in Chip Smuggling Investigation
French magistrates have filed preliminary charges against two Chinese citizens and two French nationals as part of an investigation into a prominent chip supplier. The supplier, Ommic, which is now owned by a US company, is suspected of smuggling advanced chip technology with possible military applications to China and Russia. The alleged smuggling operation is believed to have bypassed sanctions and export controls.
The investigation was initiated by France’s national prosecution service specializing in arms proliferation cases. It has now been taken over by magistrates investigating illegal exports, forgery, and other potential crimes. Since March, two French individuals and two Chinese citizens have been placed under formal investigation. This means that the magistrates have found significant evidence of potential crimes but require more time to conduct further investigations.
According to a French judicial official, two of the four individuals are facing preliminary charges for providing protected know-how to a foreign power. While details about the investigation remain confidential due to secrecy laws, Le Parisien newspaper reported that nearly 12 million euros ($13 million) worth of suspected technology exports have been uncovered. The French manager of Ommic is suspected of personally delivering chips to Russian clients, and the company also allegedly exported products to Chinese armament manufacturers using forged documents.
The investigation sheds light on the acquisition of Ommic by a Chinese businessman with connections to China’s defense industry in 2018. France’s counter-espionage agency suspects that the Chinese investor aimed to transfer French technology to China, particularly Ommic’s semiconductor manufacturing process.
Macom Technology Solutions Holdings Inc, a semiconductor supplier based in Lowell, Massachusetts, acquired Ommic for 38.5 million euros ($42.8 million) in February. However, French judicial authorities reportedly removed the Chinese investor’s stake and temporarily placed Ommic under state control prior to the sale.
Macom highlighted that Ommic’s chip portfolio and design expertise would strengthen its position in telecommunications, industrial, aerospace, and defense markets.
As the investigation continues, French authorities are emphasizing the significance of protecting advanced technology and ensuring compliance with export regulations. The case raises concerns about the illicit transfer of sensitive technologies that can have military implications.
