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The United States government is the largest semiconductor foundry in Chinaminimum salaryIt was reported that he plans to require the government to apply for an export permit from the SMIC, saying the team “has unacceptable military risk.” China’s semiconductor business will be further threatened by the US government’s restrictions on exports to SMICs.
US Strengthens Exports to Chinese Chipmaker SMIC, Citing Risk of Military Use | Reuters
https://www.reuters.com/article/us-usa-china-smic-idUSKBN26H0LN
US imposes trade sanctions on China’s largest chipmaker SMIC – SiliconANGLE
https://siliconangle.com/2020/09/27/us-imposes-trade-sanctions-chinas-largest-chipmaker-smic/
US Mobilizes to Eliminate Chinese Chipmaker SMIC with New Sanctions | Tom Hardware
https://www.tomshardware.com/news/us-moves-to-strangle-chinese-chipmaker-smic-with-new-sanctions
Regarding SMIC’s trade restrictions, Reuters reports that the US government was considering adding SMIC to the sanctions list in September 2020.
The United States is considering adding SMIC, a major semiconductor manufacturer, to the “sanction list” – GIGAZINE
According to Ministry of Commerce documents obtained by Reuters, US companies that export specific equipment to SMIC will need to apply for export licenses individually in the future. Reuters said the mandatory application for a permit is a sign of a change in US government policy, as the Commerce Ministry has not previously required a permit to export to SMIC.
The US government is said to have considered restrictions on SMIC’s export when HSMC, the same Chinese semiconductor company, faced a bankruptcy crisis. HSMC was promoting a project to build a 7nm process production line with a fund of 18.5 billion dollars (approximately 1.9 trillion yen), but it was reported that it failed due to lack of funds and was in a difficult situation. Was.
China’s semiconductor manufacturing industry is in trouble due to lack of funds: GIGAZINE
Tom’s Hardware, a technology news site, notes that SMIC has become the largest chip producer in China due to declining productivity at HSMC. So far, it had produced 6,000 14nm process chips a month, but plans to expand the production line to 35,000 a month by the end of September 2020.
Furthermore, up to 20% of SMIC’s revenue is said to come from transactions with Huawei. Tom’s Hardware said Huawei became dependent on SMIC for chip production as it could no longer trade with Taiwan’s semiconductor founder TSMC.Reported.. Therefore, restrictions on transactions with SMIC are expected to have a significant impact on Huawei.
“From an international economic perspective, the tightening of regulations on Chinese giants like SMIC and Huawei will have a significant ripple effect throughout the global supply chain,” said Nicholas Klein, a lawyer specializing in international trade. The Chinese government is very likely to respond in retaliation to this export regulation.
“We have not received any official notice of export restrictions,” SMIC said. “We do not manufacture products for military or military companies, regardless of the Chinese military.”
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