Credits: Reuters

Chipmaker GlobalFoundries was fined US$500,000 for selling silicon wafers to Chinese company SJ Semiconductor (SJS). SJS was added to the US “entity list” in 2020, and GlobalFoundries exported a total of US$17 million worth of products to it between 2021 and 2022.

The US entity list includes international companies that are seen as potential risks to the country’s security. It is managed by the Bureau of Industry and Security (BIS), which requires special licenses and permissions for commercial relations with companies listed there.

Aerial photography of GlobalFoundries installation in Dresden.
Source: Wikimedia Commons

SJS was included on the list because it has connections with SMIC, which was already considered an “entity” for allegedly maintaining ties with the Chinese army. Interestingly, it was GlobalFoundries itself that voluntarily alerted the BIS that exported to SJS. Apparently, it was a data error that did not identify SJS as a restricted company in the chipmaker selection process.

Facade of SJS building in China.
Source: SJS

The US$500,000 that GlobalFoundries will be required to pay actually represents a reduced fine due to the company’s cooperation with authorities.

GlobalFoundries also received investment from the CHIPS Act

GlobalFoundries was created by AMD in 2008 as an independent chip manufacturing company. That’s what Craig Barrett, former CEO of Intel, reminded us last week with an article published in Fortune.

The company does not compete directly with the top, occupied by TSMC and Samsung, but remains among the Top 5, fluctuating its position depending on the indicator used to compare. This is why GlobalFoundries was one of the companies benefiting from CHIPS Act investments.

Related news:

According to Tom’s Hardware, the company received a total of US$3.1 billion in government investment a few months ago. US$1.5 billion in subsidies and US$1.6 billion in facilitated loans. In other words, it is no surprise that the manufacturer is very cooperative with the US authorities.

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Source: https://www.adrenaline.com.br/hardware/globalfoundries-e-multada-em-us-500-mil-por-vendas-para-empresa-restrita-na-china/



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