Posted on 01/29/2024 8:14:42 AM PST by libh8er
South Korea's customs office has busted a chip smuggling operation that involved 53,000 chips worth $11.6 million, making it by value the biggest chip smuggling bust yet (via BusinessKorea). They found strategic chips using US tech were being routed through Korea to China. This smuggling operation was so massive that an entire company, known only as 'Company A,' rather than a single individual was behind it. All executives at the company have been charged by prosecutors for the crime which was perpetrated over three years.
From August 2020 to August 2023, 'Company A' legally bought U.S.-made chips and imported them, also legally, to South Korea. Some of these chips were then smuggled by air to China in 144 individual trips, simply by not declaring them to customs. Although many smaller-scale smugglers have tried to bring consumer CPUs and GPUs into China in the past, this operation involved chips made to convert analog signals to digital. Because these chips could conceivably be used for weapons of mass destruction, they have been under export and import restrictions since 2020.
Of course, 'Company A' would have left a paper trail when purchasing these chips, but the company was able to keep its scheme under wraps by skimming off the top of a legitimate business. 'Company A' ordered more chips than it actually needed from official distributors of the communications processor. If every single one of these chips were being smuggled to China, it would have roused suspicions much sooner.
The smuggling operation is by far the largest ever busted in respect to value, and probably also in respect to quantity. The previous record holder in news we have covered was an attempt to smuggle $4 million worth of CPUs, SSDs, and other electronics from Hong Kong to China. The would-be smuggler similarly incorrectly declared his goods to customs officials, who weren't fooled and subsequently busted the plot.
A key difference with this South Korean smuggling operation compared to most others is that the goods were all successfully smuggled, and the crime wasn't discovered until months after it reportedly concluded. While the CEO and executives of 'Company A' will likely face serious consequences, the chips are presumably being used for purposes so far unknown, perhaps even inside weapons of mass destruction as the U.S. government fears.
Economic Warfare with China one step short of a shooting war.
The Chinese are or have already reverse engineered the chips. They shouldn’t need to import them any more.
Now, Biden can award them the Presidential Medal of Freedom.
Oops! It is a Korean company! Well, then the Americans that met the order.
“South Korea’s customs office “
Our (U.S.) intelligence is “so good” that this was discovered by South Korea not by us.
Depending on the technology used it might require building a fab, which costs billions of dollars.
They do not have the manufacturing capability... yet.
Which is why they had to smuggle them.
The perps need treason charges and gallows
ChiComs have moles embedded in all South Korean and Taiwanese companies.
For all the time and money China has thrown at the process with ZERO RESULTS they still cannot make chips of less than 10nm. Taiwan and the US are producing 5nm chips and Taiwan is closte to making 3nm chips on a commercial scale.
The new tsmc plant here in AZ will start 3nm in a couple of years.
Chip Wars - bump for later.....
If a company orders 10% or maybe even 25% more than it needs for its products, how does that get caught?
The Chinese are or have already reverse engineered the chips. “
Yep, between what the rats sold them and what they stole the ChiComs advanced decades in months at a fraction of what it cost the develop the tech.
That’s what China does. Nothing new.
No doubt. Here too.
Yes. Yet in spite of all this they still can’t sell their crappy military gear to many customers. On of their biggest customers, Pakistan, is sick of radars that don’t see planes visible to the naked eye, 90% of tanks with oil leaks every where and missiles that won’t track. China’s military gear is what keeps Russia and us in business.
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