In the high-stakes world of semiconductor manufacturing, one slip of a key can mean millions—and for GlobalFoundries, a so-called “data entry error” is proving costly. This US-based chipmaker now finds itself facing a $500,000 penalty from the Department of Commerce for sending nearly 5,700 wafers, worth over $17 million, to SJ Semiconductor (SJS)—a company flagged as being a bit too close to SMIC, China’s blacklisted chip-making giant. But considering the potential fines that could’ve stacked up, GlobalFoundries might just be breathing a sigh of relief.
The U.S. government is cracking down hard on companies that inadvertently (or otherwise) flout export controls, especially with tech that could boost China’s military capabilities. Since 2020, SMIC and its affiliates, like SJS, have been barred from receiving U.S. goods without a special license. Yet GlobalFoundries’ systems didn’t catch this one. The company claims that their Oracle Global Trade Management software failed to raise any red flags when SJS was re-engaged to handle their chips, a mix-up they attribute to misrecording the “ship to” party. An honest mistake? Maybe. But it’s an expensive one.
Still, it’s not all bad news for GlobalFoundries. The Department of Commerce acknowledged the company’s openness and “extensive cooperation” throughout the investigation, which helped keep the fine lower than it could have been. John Sonderman, director of the Office of Export Enforcement, highlighted that GlobalFoundries’ voluntary disclosure saved them from the maximum civil penalty—up to a staggering $34 million.
With plans to expand its U.S. manufacturing capabilities backed by a fresh $1.5 billion from the CHIPS and Science Act, GlobalFoundries will surely be taking a closer look at its screening systems from now on.
(Source: SCMP | Reuters | EE News Europe)
