The United States on Friday fined New York-based GlobalFoundries, the world’s third-largest contract chipmaker, $500,000 for unauthorized shipments of chips to an affiliate of blacklisted Chinese chipmaker SMIC. announced that it had imposed a fine.
The U.S. Department of Commerce said in a statement that GlobalFoundries shipped 74 packages worth $17.1 million to SJ Semiconductor, an affiliate of SMIC, without obtaining a license.
Both SMIC and SJ Semiconductor were added to the trade restriction list in 2020 over SMIC’s alleged ties to China’s military-industrial complex. SMIC denies wrongdoing.
Exports to companies on the list require difficult-to-obtain permits, but GlobalFoundries had not applied for them, the ministry said.
“We urge U.S. companies to use extreme caution when sending semiconductor materials to Chinese parties,” Matthew Axelrod, assistant secretary for export enforcement, said in a statement.
27:21
Biden’s China high-tech policy goals: 10-year handicap
Biden’s China high-tech policy goals: 10-year handicap
The Commerce Department said SMIC, SJ Semiconductor and GlobalFoundries voluntarily disclosed the violations and cooperated extensively with the investigation, but did not immediately respond to requests for comment.
