U.S. Imposes Penalty on GlobalFoundries for Unauthorized Chip Exports

The U.S. fined GlobalFoundries $500,000 for exporting chips without a license to Chinese blacklisted affiliate SJ Semiconductor. The penalty underscores concerns about U.S. export policy enforcement amid efforts to prevent sensitive technology reaching China's military.

The United States government has levied a $500,000 fine on GlobalFoundries, a major player in the semiconductor industry, for unauthorized chip shipments to an entity linked to a blacklisted Chinese manufacturer. The chips were sent to SJ Semiconductor, associated with SMIC, without the requisite export licenses, the Commerce Department announced.

In 2020, SMIC and its affiliates, including SJ Semiconductor, were added to a restricted trade list due to concerns over their ties to China's military capabilities. The penalties highlight U.S. efforts to curb the transfer of technology that might bolster China's defense industry.

With U.S. lawmakers urging more rigorous enforcement of export policies, the Commerce Department's response is pivotal as tensions persist over tech exports to China. GlobalFoundries, which is expanding its manufacturing presence in the U.S. with significant governmental support, voluntarily disclosed the shipment violations and cooperated fully with investigators.

(With inputs from agencies.)