Reuters reported on the evening of September 26 that the US government has imposed export restrictions on the Chinese chip manufacturer SMIC.
Reuters said that the reason why the US government imposed export restrictions on China’s largest chip manufacturer is because the US believes that the exported equipment poses a military risk, and this risk is “unacceptable.”
On September 27, SMIC stated in an announcement that a media network inquired or forwarded a document suspected to be issued by the Bureau of Industry and Security of the US Department of Commerce. According to the contents of the document, certain products exported by SMIC and its subsidiaries and joint ventures will be subject to export controls.
This also makes SMIC the second top Chinese technology company to be subject to US trade restrictions after Huawei.
Judging from a letter issued by the US Department of Commerce on Friday cited by Reuters, the US government export restrictions include branches and joint ventures in Shanghai, Beijing, Tianjin, Shenzhen, Ningbo and even Italy. Any supplier affected by the export restriction order who wants to continue to supply SMIC must apply for an export license from the US government.
However, it is not surprising that SMIC will be suppressed by the US government. As early as the beginning of September, the Pentagon of the United States had already announced the matter, saying that the United States was considering adding SMIC to the US export blacklist on the grounds that the company’s civilian chips might be used in the military.
However, SMIC stated in a statement that they are not affiliated with the Chinese military and will not produce any products for military needs.
The company also stated that they have not received an official notification from the US government concerning this export restriction.