US tightens commerce restrictions on Chinese language chipmaker SMIC

The US Commerce Department has added China’s largest chipmaker, Semiconductor Manufacturing International Company (SMIC), to its entity listing, after it determined there an “unacceptable threat” that equipment SMIC purchased would perchance be outdated for military capabilities, Reuters reported.

The transfer blocks US computer chip firms from exporting abilities to SMIC without an export license. SMIC is the most up to the moment main Chinese language agency to be keep on the entity listing; the Trump administration added cell phone producer Huawei to the listing in 2019.

Per The Wall Avenue Journal, the Commerce Department wrote in a letter to the computer chip industry on Friday that exporting products to SMIC would “pose an unacceptable threat of diversion to a military close exercise within the Of us’s Republic of China.”

In April, the administration tightened export guidelines on shipping items to China. It claims it’s seeking out to withhold US firms from promoting products that would perchance be outdated to support give a buy to the Chinese language military.

SMIC suggested Reuters in an announcement that it makes semiconductors and presents companies “entirely for industrial close-users and close-uses,” and that it has “no relationship with the Chinese language military and doesn’t manufacture for any military close-users or close-uses.”