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SMIC and dozens of other Chinese companies are blacklisted by the US Department of Commerce
Following recent rumors, the United States has officially confirmed that it will impose sanctions on dozens of Chinese companies, including the country’s leading chip manufacturer, SMIC. The move is seen as a final hello from the administration of President Donald Trump, who wants to cement its tough stance on China just weeks before new President-elect Joe Biden takes office on January 20.
The US Department of Commerce confirmed the decision on Friday, saying the action stems from the doctrine of the merger of China’s military and civilian industries and evidence of SMIC cooperation with related organizations in the Chinese military industrial complex. US Secretary of Commerce Wilbur Ross said the ministry will not allow advanced US technology to be used in the creation of the armed forces of an increasingly belligerent adversary.
Mr Ross said the government is going to deny licenses and deny SMIC access to technology to produce semiconductors at cutting edge technology rates of 10nm or below. Probably, we are talking primarily about the ban on the supply of equipment for lithography in the deep ultraviolet range (EUV). Recall: China’s SMIC recently launched a trial production of 8nm chips on the N + 1 process technology (without EUV).
Wilbur Ross told Fox Business that the United States is adding 77 companies and affiliates to the sanctions list, including 60 companies from China. Earlier it was reported that we are talking about 80 companies, most of which are Chinese, so the rumors were fully confirmed. How China will respond to all this – it will be seen. So far, the country has simply pledged to retaliate in response to the undue harassment of Chinese companies. SMIC has not yet commented on this disastrous news for itself, but its stock quotes have already begun to fall.
SMIC and six dozen other companies will join the sanctions list, which already includes telecommunications equipment manufacturers Huawei Technologies with 150 of its branches and ZTE, as well as the manufacturer of surveillance cameras Hikvision. Last month, the US Department of Defense added four Chinese companies, including SMIC, to its blacklist, which has already banned American investors from buying and owning securities from them.