GlobalFoundries Fined $500K for Unauthorized Chip Exports to China

The US Commerce Department penalized GlobalFoundries for shipping $17 million worth of chips to a Chinese company linked to military use.

GlobalFoundries admitted to making 74 unauthorized shipments of semiconductor wafers to SJ Semiconductor, a company associated with China's SMIC.
The shipments, valued at over $17 million, occurred between February 2021 and October 2022 without the necessary export licenses.
GlobalFoundries cited a data entry error as the reason for the oversight, as SJ Semiconductor was not flagged by their transaction screening system.
The US Department of Commerce reduced the fine due to GlobalFoundries' voluntary disclosure and cooperation during the investigation.
This incident highlights ongoing challenges in enforcing US export controls amid rising global semiconductor demand.