U.S. Fines U.S. Firms for Exporting Semiconductors to China Without Authorization

A U.S. semiconductor company that exported semiconductors to China without U.S. government permission has been fined.

The U.S. Department of Commerce's Industrial Security Administration said it has decided to fine U.S. semiconductor manufacturer Global Foundry for violating export management regulations for $500,000 and 700 million won in our money.

The Commerce Department says Global Foundry has exported a total of $17 million worth of semiconductor wafers to China's SJ Semiconductor, which is subject to export controls, on 74 occasions in two years starting in 2021.

The U.S. designated Chinese semiconductor company SMIC as an export control target in 2020 to prevent China from securing advanced semiconductor technology, and included related company SJ Semiconductor in the sanctions.

The Commerce Department's Industrial Security Administration explained that Global Foundry voluntarily reported the violation of the law, saying that it made a mistake when entering data into the transaction verification system and exports were made to SJ Semiconductor.