U.S. Restrict China’s Largest Chipmaker SMIC

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U.S. Restrict China’s Largest Chipmaker SMIC
Image by Colin Behrens from Pixabay

The second leading Chinese technology company, Semiconductor Manufacturing International Corporation (SMIC) is going to face the U.S. trade restraints post the telecoms behemoth Huawei.

The United States administration has inflicted restrictions on tradings to China’s largest silicon chipmaker after inferring; there is a possible peril that equipment supplied to it could be used for military purposes.

Suppliers of specific equipment to SMIC will immediately have to practice for individual export licenses, as per the letter from the Commerce Department on September 25th. The United States has already banned many apps and has already put a restriction on the leading Chinese telecoms colossus Huawei Technologies over the fear of spying on other countries. Now Semiconductor Manufacturing International Corporation, which is the second Chinese technology company of China as these companies have access to high-end chips, has been reduced by its extension to a so-called entity list.

Beginning this month, the Pentagon said that it was contemplating blacklisting SMIC, as the United States government has recognised as a peril due to an alleged coalition of military and civilian technologies.

Founded in 2000, Semiconductor Manufacturing International Corporation said that it had not got any sanctioned note of the restrictions. The company headquartered in Shanghai, China also mentioned that it has no links with the military.

SMIC added that it is a manufacturing company of semiconductors and its sole purpose is to provide service to commercial and civilian end-users.

It has a clear statement stating that it has no connection with the Chinese military and has no illegal intention to manufacture equipment for any military end-users. The Commerce Department refused on September 26th to discuss on SMIC. Still, it said its Bureau of Industry and Security had been assessing and monitoring any kind of threats to the United States foreign policy as well as national security.