France suspects advanced chip technology is being smuggled into China and Russia

The probe of Ommic, a semiconductor manufacturer based in the Paris-region and now in American hands, was launched by France’s national prosecution service that specialises in cases involving arms proliferation.

Ongoing investigations since March

The probe is now being led by magistrates investigating suspected illegal exports, forgery and other suspected crimes, according to a French judicial official who spoke on condition of anonymity because of secrecy laws that cover magistrates’ probes.

The official said four people — two French, two Chinese — have been placed under formal investigation since March. That means magistrates believe there is considerable evidence of potential crimes but want more time to investigate.

Two of the four people face preliminary charges of handing over protected know-how to a foreign power, the judicial official said. The official and the prosecution service, which also specialises in terrorism cases, refused to go into greater detail about the investigation.

Transferring French technology

The newspaper Le Parisien first reported on the case. It said investigators have uncovered nearly €12 million worth of suspected exports of technology.

It said the company’s French manager is suspected of having personally delivered chips to Russian clients. It said products were also exported to Chinese armament manufacturers with the help of forged paperwork.

The newspaper said a Beijing-based Chinese businessman with ties to China’s defence industry bought a majority stake and took control of Ommic in 2018.

France’s counter-espionage agency suspects the Chinese investor was seeking to transfer French technology to China, notably a semiconductor manufacturing process that Ommic specialises in, the newspaper said.

Macom Technology Solutions Holdings Inc., a semiconductor supplier based in Lowell, Massachusetts, announced in February that it was acquiring Ommic for €38.5 million. Le Parisien reported that French judicial authorities stripped Ommic’s Chinese investor of his stake and temporarily placed the company under state control before its sale.

Macom said Ommic’s portfolio of chips and its design know-how would strengthen its position in telecommunications, industrial, aerospace and defence markets.