US chipmaker GlobalFoundries has been fined $500,000 after confessing that it shipped products valued at over $17 million to a Chinese firm on a restricted trade list, according to a report by the New York Times, which said it sent 74 shipments of wafers to SJ Semiconductor from February 2021 to October 2022.
SJ Semiconductor was put on the Commerce Department’s Entity List in December 2020 because it had ties to China’s top chipmaker SMIC, which had dealings with the country’s military complex and was deemed to pose a threat to US security, the report said.
However, GlobalFoundries is a supplier to the US Defense Department and had a “history of exemplary compliance”. It had also received $3.1 billion in grants to triple its production capacity in New York State under the government’s Chips and Science Act. So, the company was given a relatively small penalty because it voluntarily disclosed the information and cooperated with government investigators.
Read the full report: New York Times.
ALSO SEE:
US Rules to Limit Investment in China’s Chips, Quantum and AI
TSMC Ends Dealings With Firm Seen as Proxy Buyer For Huawei
US Ban on Investment Not Good For AI Sector, China Says
US Panel Wants Investment Ban on Critical Tech Sectors in China
China’s Bid to ‘Cheat’ a Way to Chip Prominence is Failing: Envoy
US Plans New Rules for Cloud Firms to Cut Off China AI Access
Venture Capitalists’ Backing China Put Democracy at Risk – NYP
Nvidia to Stop Some AI Chip Exports to China Immediately
China’s Military, AI Bodies Still Buying Nvidia Chips Despite US Ban
