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US pressures Chinese chipmaker SMIC over trade war with China

China-US

Drawing from an ongoing dispute that sees two of the world’s most powerful countries set in a trade war, the US government is taking a jab at China by imposing export restrictions against Semiconductor Manufacturing International Corp., Financial Times reports.

Part of the measure to limit exports to the Chinese company involves a mandated license that will oversee certain products leaving shores for SMIC, which is reportedly aimed at mitigating the “unacceptable risk” that comes with the idea of the goods getting used for military purposes. 

Via an email, SMIC responded to the issue by claiming that they have not received any official word regarding the sanctions. In addition, it also claims that it does not have any relations with the Chinese military and it does not involve itself in manufacturing products with militaristic purposes.

Processor

The Shanghai-based manufacturing company is the largest chipmaker in China and is worth $29 billion. Further data from Jefferies show that an estimated 50 percent of its equipment comes from the US, and it has business partnership with the likes of Qualcomm, Inc. and Broadcom, Inc.

Meantime, the US government is pondering on the idea of including SMIC in the “entity list,” similar to the fate suffered by Huawei.

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