US boycott of SMIC; Why was the Chinese chip maker banned in the United States?

United States Department of Commerce A report issued a few months ago last Friday issued a press release Financial Times Confirmed. According to this announcement, International Semiconductor Industries Company (SMIC) China ‌ is now blacklisted by the US Department of Commerce.

The Ministry of Commerce, in addition to SMIC, has decided to blacklist 60 other Chinese companies. The US government believes that these companies have connections with Liberation Army of the People’s Republic of China have.

Added to the black list of the Ministry of Commerce (Entity List) severely restricts the capabilities of sanctioned businesses and does not allow them to use the technologies of US companies. However, DJI issued a press release saying that US residents are still allowed to buy and use the company’s products.

The addition of SMIC chip maker to the US blacklist means that from now on, all US technology companies that want to sell any US-specific technology to SMIC must apply for a license; That is, the way the SMIC and DJI are sanctioned is similar to the mechanism used by the United States to sanction Huawei.

The Department of Commerce explicitly states that manufacturers of tools and other technologies required to make chips based on 10-nanometer lithography or more advanced lithographs must apply for a license. The Ministry of Commerce will contact them, assuming the application is rejected, and will approve the application if sufficient reasons are given.

The United States says the SMIC is helping the Chinese government strengthen its military capabilities

stay on The US Department of Commerce’s SMIC blacklist prevents the company from accessing US-made equipment, parts, raw materials and software. Without these technologies, SMIC would not only lose the ability to produce new equipment and develop more advanced lithographs, but would eventually have difficulty maintaining its factories; Because it needs special parts and some special materials to continue the activity.

Wilbur Ross“We will not allow advanced American technologies to help strengthen our belligerent hostile army, which will increase over time,” the US Secretary of Commerce said in a statement. Wilbur Ross says the SMIC has ties to Chinese government institutions and allows China to use American technology to support its military modernization process.

Previously, the export of any American advanced technology to China required a license; But the Ministry of Commerce did not review the applications by default, rejecting them.

Earlier this year, the Commerce Department announced that it would limit exports of high-tech technology to China, Russia and Venezuela so that they could not use US technology to bolster their armies. The US government has also restricted exports of US equipment to Hong Kong. Surveys have shown that Chinese companies use Hong Kong as a gateway to US technology without the permission of the US government.

The Secretary of Commerce says Entity List restrictions are a necessary measure to ensure that China, through the SMIC, cannot harness the potential of American technology to support “destabilizing military activity.”

According to new reports, despite US sanctions, SMIC has resumed talks with Dutch company ASML to gain access to the company’s EUV scanners. ASML is known as the largest manufacturer of lithographic tools in the world. According to Digitimes EUV scanners are critical for SMIC to produce chips with more advanced lithography than seven nanometers.

Leave a Reply

Your email address will not be published. Required fields are marked *