US Fines Major Chipmaker for Selling to Company Connected to Chinese Military

The U.S. Department of Commerce on Nov. 1 fined GlobalFoundries U.S. Inc. $500,000 for shipping chips to Chinese firm SJ Semiconductor, a company that has been sanctioned by the United States for its ties to the Chinese military. GlobalFoundries is headquartered in Malta, New York, and has 14 locations around the globe, supplying more than 200 customers worldwide. The company sold about $17.1 million worth of chips to SJ Semiconductor via 74 separate shipments, but voluntarily disclosed the information to the Commerce Department’s Bureau of Industry and Security and cooperated with an investigation, resulting in a settlement, according to the bureau. “We want U.S. companies to be hypervigilant when sending semiconductor materials to Chinese parties,” stated Assistant Secretary for Export Enforcement Matthew S. Axelrod. “And when, as here, that vigilance falls short and semiconductor materials have gone where they shouldn’t, we want companies to make voluntary disclosures, remediate, and cooperate with us.”...