SMIC has had ‘preliminary exchanges’ with U.S. over export restrictions

SHANGHAI (Reuters) – Chinese chipmaker Semiconductor Manufacturing International Corporation has undertaken “preliminary exchanges” with the U.S. Bureau of Industry and Security regarding export restrictions, the company said on Sunday in a filing.

FILE PHOTO: FILE PHOTO: A security officer stands outside a building of Semiconductor Manufacturing International Corporation (SMIC) during its grand opening in Shanghai November 22, 2001./File Photo

“The Company is conducting assessments on the relevant impact of such export restrictions on the company’s production and operation activities,” the filing to the Hong Kong Stock Exchange said.

SMIC also said it has been operating in compliance with the relevant laws and regulations of all jurisdictions where it performs its businesses.

The company also advised shareholders and potential investors “to exercise caution when dealing in the securities of the Company.”

In September, Reuters reported that the Bureau of Industry and Security under the Department of Commerce had issued letters informing

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U.S. sanctions on chipmaker SMIC hit at the very heart of China’s tech ambitions

  • The U.S. government has reportedly imposed restrictions that require suppliers to get an export license to sell certain equipment to China’s biggest chipmaker SMIC.
  • The move threatens to hit at the heart of China’s plans to boost its domestic semiconductor industry, a need that has been accelerated by the trade war with the U.S.
  • SMIC is seen as a critical part of China’s ambitions and the commerce department’s sanctions could hold back the company’s development for several years.



a circuit board: A close up image of a CPU socket and motherboard laying on the table.


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A close up image of a CPU socket and motherboard laying on the table.

GUANGZHOU, China — The U.S. government has reportedly imposed restrictions on exports to SMIC, China’s biggest chip manufacturer, a move that threatens Beijing’s push to become more self-reliant in one of the most critical areas of technology.

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Suppliers for certain equipment to SMIC will need to apply for an export license, according

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SMIC Joins the Big Bath of China Security Threats

The rules don’t appear as strict as those placed on Huawei Technologies Co. earlier this year, according to Bloomberg News. That move ended up forcing suppliers like Taiwan Semiconductor Manufacturing Co. to stop making chips to the Chinese company’s design.

Yet the timing should raise eyebrows. The U.S. Commerce Department is implementing the ban because products sold to the chipmaker pose an “unacceptable risk of diversion to a military end use,” according to a letter from the department’s Bureau of Industry and Security, the report said.

That sounds terrifying. In reality, anything sold to any company could end up having a military use: from an operating system developed by a software maker (armies use computers), to rubber and chemicals made by industrial giants (military trucks have tires).

Despite the increased rhetoric from the Trump administration, the U.S. doesn’t apply arbitrary rules to its definition of military end use. In fact,

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China must prepare for ‘long tech march’ following U.S. restrictions on SMIC: Global Times

FILE PHOTO: Chinese and U.S. flags flutter near the Bund in Shanghai, China July 30, 2019. REUTERS/Aly Song/File Photo

SHANGHAI (Reuters) – China must engage in a new “long march” in the technology sector now that the U.S. has imposed export restrictions on Semiconductor Manufacturing International Corp, the country’s largest chip manufacturer, Chinese state-backed tabloid the Global Times wrote on Sunday.

The unnamed author of an op-ed in the paper here argues that the U.S’ dominance of the global semiconductor industry supply chain is a “fundamental threat” to China.

“It now appears that China will need to control all research and production chains of the semiconductor industry, and rid itself of being dependent on the U.S.,” the author wrote.

On Saturday, Reuters reported that the U.S. had sent letters to companies informing them that they must obtain a license to supply SMIC.

The letter stated that SMIC and its subsidiaries

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US tightens trade restrictions on Chinese chipmaker SMIC

The US Commerce Department has added China’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), to its entity list, after it determined there an “unacceptable risk” that equipment SMIC received could be used for military purposes, Reuters reported.

The move blocks US computer chip companies from exporting technology to SMIC without an export license. SMIC is the latest major Chinese firm to be put on the entity list; the Trump administration added phone manufacturer Huawei to the list in 2019.

According to The Wall Street Journal, the Commerce Department wrote in a letter to the computer chip industry on Friday that exporting products to SMIC would “pose an unacceptable risk of diversion to a military end use in the People’s Republic of China.”

In April, the administration tightened export rules on shipping goods to China. It claims it’s seeking to keep US companies from selling products that could be used

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U.S. restricts exports to China’s SMIC

The letter said the licensing regime will be in place “pending the U.S. government’s review of SMIC and its subsidiaries.”

The Pentagon earlier this month said the Trump administration was considering adding SMIC to the Entity List, a trade blacklist that would block U.S. technology sales unless companies receive a license.

The Commerce Department “has determined that exports to SMIC or its subsidiaries, including those listed above, may pose an unacceptable risk of diversion to a military end use in the People’s Republic of China pending the U.S. government’s review of SMIC and its subsidiaries,” said the letter, which was reported earlier by the Financial Times and The Wall Street Journal.

SMIC and other chip manufacturers depend on U.S. software and chip-making machinery to produce semiconductors.

The Commerce Department declined to comment on the letter but said it is “constantly monitoring and assessing any potential threats to U.S. national security

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