The corporate mentioned in an SEC submitting that it rejected the allegations. It says its onerous disc-drives aren’t topic to Export Administration rules, however troubles over the problem may have an effect on its enterprise.
“Seagate believes it has complied with all related export management legal guidelines and rules,” it mentioned.
Seagate mentioned the allegation is over gross sales between August 2020 and September 2021 to “a buyer and its associates.” It didn’t title the shopper. Nonetheless, Seagate is a serious provider of onerous drives to telecom tools big Huawei Applied sciences, a serious goal of export controls.
The opposite main provider, Western Digital, stopped gross sales to Huawei in 2019, not lengthy after it had signed a strategic partnership with the Chinese language firm, the largest maker of community gear for cellphone and web carriers.
Huawei didn’t instantly reply to a request for remark.
In reporting decrease revenue and revenues for its fiscal first quarter, Seagate mentioned it was lowering its headcount by 3,000 folks as a part of a restructuring. It cited world uncertainties and slower demand.