Bosch to Pay $36 Million Penalty for Illicit Sales to Huawei

Bosch agreed to pay a $36 million penalty for selling export-controlled goods to Huawei. The illicit sales occurred between 2020 and 2024, totaling over $72 million in MEMS sensors and automotive software. The U.S. Justice Department suspended its investigation and declined prosecution due to Bosch's self-disclosure and cooperation. Bosch will surrender nearly $11.5 million in profits, with $3.6 million counting towards the $36 million fine. The items sold contained U.S.-origin technology, software, or intellectual property requiring export licenses.

German firm settled with U.S. Justice Department over MEMS sensors and software violations

David Peters, Assistant Commerce Secretary for Export Enforcement, stated that Bosch had several opportunities to avoid these violations. He emphasized that the Bureau of Industry and Security expects increased vigilance from companies whose transactions are governed by the Export Administration Regulations. John A. Eisenberg, Assistant Attorney General for National Security, noted that the declination reflects the clear benefits for companies that promptly disclose potential violations. He added that fully assisting in investigations provides significant advantages for the accused firms.

The penalty stems from sales of MEMS sensors and automotive software to a banned Chinese firm. These items contained U.S.-origin technology, software, or intellectual property that required export licenses. The illicit transactions spanned a four-year period from 2020 to 2024. The total value of these sales exceeded $72 million. The U.S. Justice Department decided to suspend its investigation after Bosch cooperated.

Bosch will surrender nearly $11.5 million in profits as part of the settlement. The $3.6 million portion of this surrender counts towards the total $36 million fine. The Bureau of Industry and Security highlighted the importance of export compliance for technology vendors. The Justice Department's decision to decline prosecution underscores the value of self-disclosure in regulatory matters.