(Reuters) -- The U.S. said on Friday it imposed a $500,000 penalty on New York-based GlobalFoundries, the world's third-largest contract chipmaker, for shipping chips without authorization to an affiliate of blacklisted Chinese chipmaker Semiconductor Manufacturing International Corp.
In a statement, the Commerce Department said GlobalFoundries sent 74 shipments worth $17.1 million to SJ Semiconductor, an affiliate of SMIC, without seeking a license. Both SMIC and SJ Semiconductor were added to a trade restriction list known as the Entity List in 2020 over SMIC's alleged ties to the Chinese military-industrial complex. SMIC has denied wrongdoing.
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