News GlobalFoundries fined $500,000 for restricted chip exports to Chinese firm on U.S. entity list — chipmaker shipped $17 million worth of silicon waf...

[Admin]

GlobalFoundries is said to have shipped 74 orders, totaling $17.1 million, to SJ Semiconductor, a SMIC affiliate, without obtaining the required license.

GlobalFoundries fined $500,000 for restricted chip exports to Chinese firm on U.S. entity list — chipmaker shipped $17 million worth of silicon waf... : Read more

 

[hotaru251]

company does a bad thing and makes $17M
company fined $500k

Company: just the cost of doing business.

until punishments outweigh profits they will keep doing stuff in future. This goes for any and all companies regardless of who it is.

 

[michalt]

company does a bad thing and makes $17M
company fined $500k

Company: just the cost of doing business.

until punishments outweigh profits they will keep doing stuff in future. This goes for any and all companies regardless of who it is.

If you read the article... company accidentally does bad thing. Realizes its mistake and turns itself in. Company fined far less than they would have been if they hadn't been so open.

 

[Co BIY]

$17 million sales is not $17 million profit.

Profit margin on silicon wafer sold to China ? I'm not sure.

 

[cuvtixo]

$17 million sales is not $17 million profit.

Profit margin on silicon wafer sold to China ? I'm not sure.

I'm pretty sure $17 million is also valuation based on what an American company use as "retail" price, maybe for tax purposes (silicon wafers aren't consumer product, obviously). In other words, the biggest number the prosecutor could find, at least with the minimal fact checking the news article reporters might do. Also, this isn't "advanced chip IP tech", these are blanks that chip manufacturers have to put there own designs on, not the designs themselves nor finished product. This was an exercise in demonstrating that the the US government is watching and enforcing rules.

 

[Blitz Hacker]

I'm pretty sure $17 million is also valuation based on what an American company use as "retail" price, maybe for tax purposes (silicon wafers aren't consumer product, obviously). In other words, the biggest number the prosecutor could find, at least with the minimal fact checking the news article reporters might do. Also, this isn't "advanced chip IP tech", these are blanks that chip manufacturers have to put there own designs on, not the designs themselves nor finished product. This was an exercise in demonstrating that the the US government is watching and enforcing rules.

I'm with hotaru251 on this one, lets assume only 7 million was profit, at a $500,000 fine, that's a crappy tariff at best, it's just high lighting how the rules only apply to the poor.
And OFC the company 'didn't know about it' .. if they did and admitted to that they would be shut down, instead they get a $500,000 fine, and continue to do business.
At the bare minimum the profits should be taken and the $500,000 fine applied atop that.