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Chipmaker GlobalFoundries faces $500,000 fine for banned shipments to China

Economic TimesEconomic Times · 1m
Chipmaker GlobalFoundries faces $500,000 fine for banned shipments to China

The US chipmaker GlobalFoundries will be fined $500,000 by the Biden administration for shipping over $17 million worth of products to a Chinese company on the restricted trade list. GlobalFoundries had sent numerous shipments of wafers (thin slices of silicon used in chipmaking) to SJ Semiconductor in China, violating the technology controls on China. GlobalFoundries failed to identify SJ Semiconductor in its screening system due to a data error. The fine is significant as GlobalFoundries is one of the largest chip companies to receive funding under the CHIPS and Science Act. The Biden administration has been implementing restrictions on advanced chip sales to China to prevent aiding their military development.

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