(WS News) – The US imposed a $500,000 penalty against GlobalFoundries, the world’s third-largest contract chipmaker, for shipping chips to a Chinese company without seeking authorization, the Department of Commerce said on Friday.
In a statement, it said GlobalFoundries had sent 74 shipments worth $17.1 million to a firm on a trade restriction list known as the entity list. Exports to firms on the list require a difficult-to-obtain license, which GlobalFoundries did not apply for, the department said.
GlobalFoundries did not immediately respond to a request for comment.
Lawmakers from both parties have expressed concern about whether the Commerce Department, which oversees export policy, is acting aggressively to enforce its regulations as Washington seeks to halt the flow of sensitive technology to China over fears it could be used to bolster the Chinese military.
Influential Democratic Senator Mark Warner criticized the Biden administration for “apparent lax monitoring” of TSMC following revelations a chip produced by the Taiwanese chipmaker ended up in a product made by China’s heavily sanctioned Huawei, Reuters reported on Thursday.
GlobalFoundries, majority owned by Abu Dhabi’s sovereign wealth fund Mubadala Investment Co, is slated to receive around $1.5 billion from the Commerce Department to build a new semiconductor production facility in Malta, New York, and expand existing operations there and in Burlington, Vermont.
The grant is part of a US program to encourage chipmakers to expand production in the United States.
