US fines GlobalFoundries for unauthorized chip exports

The United States government has fined GlobalFoundries, a major player in the semiconductor industry, $500,000 for unauthorized shipments of chips to an organization linked to a blacklisted Chinese manufacturer. The Commerce Department said the chips were sent to SMIC-affiliated SJ Semiconductor without the required export licenses.

In 2020, SMIC and its affiliates, including SJ Semiconductor, were placed on a restricted trade list due to concerns about their links to China’s military capabilities. The penalties underscore U.S. efforts to limit technology transfers that could support China’s defense industry.

With U.S. lawmakers calling for stricter enforcement of export policies, the Commerce Department’s response is key as tensions remain over technology exports to China. GlobalFoundries, which has been expanding its U.S. manufacturing presence with significant government support, voluntarily disclosed the shipping violations and cooperated fully with investigators.

(With data from agencies.)