US fines third-largest microchip manufacturer for supplies to China
US fines third-largest microchip manufacturer (illustrative photo: Getty Images)
The US imposed a fine of $500,000 on the New York-based GlobalFoundries. The company was shipping microchips to an affiliate of the Chinese manufacturer SMIC, reports Reuters.
In its statement, the US Department of Commerce said that GlobalFoundries had shipped 74 shipments worth $17.1 million to SJ Semiconductor, a subsidiary of SMIC, without requesting a license.
SMIC and SJ Semiconductor were placed on a list of trade restrictions, known as the “Entity List,” in 2020 due to SMIC's alleged ties to the Chinese military-industrial complex. SMIC denies any wrongdoing.
Exporting to firms on the list requires a difficult-to-obtain license, which GlobalFoundries has not applied for.
In its statement, GlobalFoundries said it regrets “the inadvertent action, due to a data-entry error made prior to the entity listing” that led to the accidental shipment of obsolete chips without a license.
Last month, the United States imposed sanctions on two Chinese companies for their involvement in the development of a Russian drone.
