GlobalFoundries Fined in U.S. Crackdown on Chip Shipments to China

The Biden administration has fined U.S. chipmaker GlobalFoundries USD 500,000 for unauthorised exports to a restricted Chinese entity, reflecting heightened U.S. control over tech transfers to China.

The Bureau of Industry and Security levied the fine after GlobalFoundries exported USD 17 million in silicon wafers to SJ Semiconductor, linked to SMIC, China’s largest chip producer. A data error excluded SJ Semiconductor from GlobalFoundries’ screening system. The company self-reported the incident, resulting in a reduced penalty. As a key CHIPS Act beneficiary, GlobalFoundries affirmed its commitment to compliance.