GlobalFoundries fined $500,000 for restricted chip exports to Chinese firm on U.S. entity list — chipmaker shipped $17 million worth of silicon wafers to China’s SJ Semiconductor

GlobalFoundries.

The Biden administration (via Reuters) has announced a $500,000 fine for U.S.-based chipmaker GlobalFoundries following shipments of silicon wafers, valued at over $17 million, to China’s SJ Semiconductor (SJS), a company listed on the U.S. entity list. This list, managed by the Bureau of Industry and Security (BIS), includes firms deemed security threats, requiring special U.S. licenses for technology exports.

Notably, SJ Semiconductor was added in 2020 for connections with Semiconductor Manufacturing International Corporation (SMIC), China’s top chipmaker, which the U.S. alleges has links to the Chinese military. Between February 2021 and October 2022, GlobalFoundries sent 74 shipments of silicon wafers—critical materials in semiconductor manufacturing—to SJS.