⁍ The United States has imposed restrictions on exports to China’s biggest chip maker SMIC.
⁍ The U.S. concluded there is an ‘unacceptable risk’ equipment supplied to it could be used for military purposes.
⁍ SMIC said it had not received any official notice of the restrictions and said it has no ties with the Chinese military.
– The US is putting new restrictions on exports of equipment to China’s biggest chip maker, fearing it could be used for military purposes, Reuters reports. The Commerce Department has told suppliers they’ll need to apply for export licenses if they want to sell equipment to Semiconductor Manufacturing International Corporation. SMIC says it has “no relationship with the Chinese military” and it “does not manufacture for any military end-users or end-uses.” The Commerce Department says it is “constantly monitoring and assessing any potential threats to US national security and foreign policy interests.” Earlier this year, the US told companies seeking “military end user” licenses to sell to SMIC that they weren’t necessary, sources tell Reuters. SMIC says it hasn’t received any official notice of the restrictions. The Commerce Department’s Bureau of Industry and Security declined to comment specifically on SMIC, but said it was “constantly monitoring and assessing any potential threats to US national security and foreign policy interests.” SMIC is the latest Chinese company to face US trade restrictions. Telecoms giant Huawei Technologies had its access to high-end chips curtailed by its addition to a Commerce Department blacklist known as the entity list. SMIC’s new designation is not as severe as being blacklisted, which makes it difficult to get any export license approved. The Pentagon earlier this month, said it was working with other agencies to determine whether to blacklist SMIC. US companies including Lam Research, KLA Corp, and Applied Materials, which supply chipmaking equipment, may now need to get licenses to ship goods to SMIC.
Source: https://www.reuters.com/article/usa-china-smic/update-1-us-tightens-exports-to-chinas-chipmaker-smic-citing-risk-of-military-use-idUSL8N2GN07T