United States considers blacklisting China tech firm SMIC

United States considers blacklisting China tech firm SMIC

Sources say the U.S.is probing potential ties between SMIC and the Chinese People's Liberation Army.

China accused the USA government of the "blatant bullying" of Chinese companies following reports that Washington would be imposing sanctions on chipmaker Semiconductor Manufacturing International Corp.

China urged Washington on Monday to cease oppressing overseas corporations, after the US Division of Protection warned it'd block American tech companies from offering items and providers to Beijing's largest chip producer.

The U.S. has imposed similar access restrictions on U.S. components for China's Huawei Technologies, one of the biggest network equipment and smartphone manufacturers.

"China has made a solemn stand on (the) U.S.′ unprovoked suppression on Chinese companies", Zhao told reporters, according to a CNBC translation of his comments in Mandarin.

Sanctions on SMIC would hurt China's chipmaking ambitions. Along with Huawei, it produces comparatively low-tech chips for a bevy of little-known Chinese firms.

As much as 50pc of SMIC's equipment is from the US, Jefferies estimated. It has sought to build out foundries for the manufacture of computer chips that can compete with TSMC.

While China is putting emphasis on its domestic semiconductor industry, it has been reported that this effort is losing traction as a result of its trade war with the. The chipmaker could be added to a list of companies that the U.S. government considers to be undermining American interests. Reuters noted Lam Research and Applied Materials are among the companies that provide the firm with production equipment.

If the USA did add SMIC to the blacklist, though, it could dramatically escalate an already tense trade war. China has been accused of trying to steal the technology from foreign companies.

However some Chinese suppliers were making advances.

Novatek shares have plunged about 15 percent since media reports last month that Huawei Technologies Co (華為) planned to team up with SMIC to make inroads into the driver IC market. It's also noted that the USA government is anxious that the Chinese government is trying to develop competitors for the American industry.

0981) slid sharply in premarket trading on Monday as the United States expressed plans of prohibiting American companies from doing business with the Chinese firm.

However that would run counter to Beijing's desire to boost homegrown chip production.

Related Articles