US fines GlobalFoundries US$500,000 for supplying chips to Chinese company

In a new chapter of the US imposing fines on companies that collaborate with the Chinese market, the GlobalFoundries, third largest contract chip manufacturer in the world, received a fine of US$500 thousand for supplying microcircuits to a customer that is a subsidiary of the Chinese semiconductor manufacturer Minimum wage.

According to data from the US Department of Commerce, GlobalFoundries sent 74 batches of chips worth US$17.1 million to SJ Semiconductor, affiliated with SMIC. And this shipment was made without proper approval from American regulators.

It is worth remembering that both SMIC and SJ Semiconductor have been under US sanctions since 2020 for alleged links with China’s military industrial complex.

The export of products to customers on this list is only permitted if the American government issues a license, a procedure that was not followed by GlobalFoundries.

GlobalFoundries admits that it did not comply with procedure

In a note sent to Reuters, GlobalFoundries admitted that it did not follow procedure, and promised to strive to cooperate with the US Department of Commerce.

There is a real pitched battle between the USA and China over the semiconductor market.

In addition to public investments in companies such as Intel To increase its production capacity and technological adoption, the US government has also been crafting agreements to further neutralize China. Recently, Bloomberg revealed that the Japan is aligning itself with the United States in an attempt to prevent the sale of semiconductors to China.

China is also doing its part to stay relevant in this struggle. The nation already invests more in chip manufacturing equipment than the US, Taiwan and South Korea combined.