U.S. restricts exports to SMIC, China’s largest chipmaker

U.S. restricts exports to SMIC, China's largest chipmaker

The Trump administration has issued new restrictions on exports to China’s largest chipmaker, Semiconductor Manufacturing Worldwide Company (SMIC), noting that the corporate “might pose an unacceptable danger of diversion to a navy finish use within the Folks’s Republic of China.”

As is the case with Huawei, U.S. firms that need to do enterprise with SMIC might want to get a license from the Commerce Division. The transfer comes as tensions between the U.S. and China escalate, with the U.S. including dozens of Chinese language organizations to the entity record over the past 18 months and banning WeChat and TikTok within the nation.

The transfer will hit SMIC onerous because it depends closely on U.S. tools and software program in its manufacturing services. The Chinese language authorities invested $2.2 billion in SMIC earlier this 12 months towards a brand new fabrication plant because the nation tries to turn out to be self-reliant on the wafer entrance. Though China is the world’s largest producer of telephones and different shopper items, it does not have the technical know-how to make its personal chips — it imports $300 billion price of laptop chips yearly.

SMIC is China’s largest chipmaker, but it surely lags behind TSMC and Samsung in the case of cutting-edge manufacturing. TSMC’s 7nm node is broadly utilized by everybody from Qualcomm to NVIDIA, and Samsung equally makes use of a 7nm node for its in-house designs. SMIC, in the meantime, simply laid the groundwork for shift to 7nm from 14nm, and it will likely be a number of years earlier than it is ready to roll out 7nm chips.

For its half, SMIC issued an announcement that it did not obtain official communication from the U.S. authorities relating to the ban, and that it doesn’t manufacture chips for the Chinese language navy:

Semiconductor Manufacturing Worldwide Company (the “Firm” or “SMIC”) famous {that a} doc suspected to have been issued by the Bureau of Business and Safety of the US Division of Commerce was despatched to the Firm by media asking for affirmation or forwarded on-line on Saturday, 26 September 2020. In response to the doc, some merchandise exported to SMIC, its subsidiaries and joint ventures will probably be topic to export management.

As of the date of this announcement, the Firm has not obtained such official info. SMIC reiterates that it manufactures semiconductors and supplies providers solely for civilian and industrial end-users and end-uses. The Firm has no relationship with the Chinese language navy and doesn’t manufacture for any navy end-users or end-uses.

The Firm will proceed to pay shut consideration to this matter and difficulty additional announcement as and when applicable.

Supply from www.androidcentral.com

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