GlobalFoundries to Pay $500K for Collaboration with Chinese Company

Violation of Export Control Regulations

GlobalFoundries, an American semiconductor manufacturer, has agreed to pay a $500,000 civil penalty to settle charges that it violated export control regulations by transferring technology to a Chinese company.

Background

In 2018, GlobalFoundries entered into a joint venture with a Chinese company called Wuhan Xinxin Semiconductor Manufacturing Corporation (WXM).

As part of the joint venture, GlobalFoundries provided WXM with technical assistance and equipment.

Investigation and Findings

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) investigated the transfer of technology and determined that GlobalFoundries had violated export control regulations.

BIS found that GlobalFoundries had failed to obtain the required export license for the transfer of technology.

Settlement

To settle the charges, GlobalFoundries agreed to pay a $500,000 civil penalty.

The company also agreed to implement a compliance program to ensure that it complies with export control regulations in the future.

Significance

The settlement highlights the importance of complying with export control regulations.

Companies that violate these regulations can face significant penalties, including civil fines and criminal charges.

Conclusion

GlobalFoundries' settlement serves as a reminder that companies must take export control regulations seriously.

Failure to comply with these regulations can have serious consequences.