GlobalFoundries Faces $500,000 Fine for Unauthorized Chip Exports

GlobalFoundries was fined $500,000 by the U.S. for unauthorized chip shipments to SJ Semiconductor, associated with the blacklisted Chinese firm SMIC. The Commerce Department cited a failure to obtain necessary licenses. The incident raises concerns over export enforcement amid China's military ties allegations.

The U.S. has imposed a $500,000 fine on GlobalFoundries, New York's third-largest contract chipmaker, for unauthorized chip exports to SJ Semiconductor, an affiliate of the blacklisted Chinese company SMIC. This penalty reflects concerns over national security and unauthorized technology transfers.

The Commerce Department revealed that GlobalFoundries made 74 shipments valued at $17.1 million without seeking a required license. These companies were blacklisted in 2020 over alleged ties to China's military. The department acknowledged GlobalFoundries' cooperation and voluntary disclosure of the violation.

This incident highlights growing scrutiny of tech exports to China. Concerns are mounting on the enforcement of export policies, with influential politicians calling for stricter controls. Meanwhile, GlobalFoundries is set to receive $1.5 billion to expand its U.S. production facilities, aligning with efforts to bolster domestic semiconductor manufacturing.

(With inputs from agencies.)