GlobalFoundries disclosed that it sold approximately $17.1 million worth of chips to SJ Semiconductor through 74 separate shipments, which it later reported to the Commerce Department.
On November 1, the U.S. Department of Commerce imposed a $500,000 fine on GlobalFoundries U.S. Inc. for supplying chips to SJ Semiconductor, a Chinese company with ties to the Chinese military. GlobalFoundries, based in Malta, New York, operates 14 locations globally and serves over 200 customers worldwide.
Despite the sales to SJ Semiconductor, GlobalFoundries voluntarily shared the information with the Commerce Department’s Bureau of Industry and Security and cooperated with the investigation, resulting in a settlement. Assistant Secretary for Export Enforcement, Matthew S. Axelrod, emphasized the importance of U.S. companies being vigilant when exporting semiconductor materials to Chinese entities.
SJ Semiconductor, linked to China’s Semiconductor Manufacturing International Corporation, was sanctioned in 2020. The shipments took place in 2021 and 2022, with GlobalFoundries unknowingly selling to SJ Semiconductor through a data screening error.
In recent years, the United States has implemented measures to prevent the Chinese Communist Party (CCP) from acquiring advanced chips and manufacturing technology for national security reasons. The Biden administration’s CHIPS Act aims to enhance domestic innovation in semiconductor technology.
The administration announced CHIPS funding for two research and development centers on opposite coasts. In Albany, New York, an $825 million investment was made in NY CREATES’ Albany NanoTech Complex to support a national Extreme Ultraviolet (EUV) Accelerator project. EUV technology is crucial for manufacturing advanced chips measuring in single-digit nanometers.
Secretary of Commerce, Gina Raimondo, emphasized the significance of the research and development component of the CHIPS and Science Act in maintaining national security and technological competitiveness.
Additionally, a second research and development facility focused on design was announced in Sunnyvale, California, to be led by the National Semiconductor Technology Center.
Source link
