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The US Department of Commerce explained that the action comes from “evidence of activity between the International Semiconductor Manufacturing Company (SMIC) and entities related to the Chinese defense industry.”
According to the ReutersUS Commerce Secretary Wilbur Ross confirmed that the government would prevent SMIC from accessing the technology used to make semiconductors at an advanced level, that is, 10 nanometers or less. According to Ross, his ministry “will not allow modern American technology to help build a rival army.”
Respond to channel interviews Fox BusinesRoss said the United States has added a total of 77 companies and affiliates to the sanctions list, including 60 Chinese companies. Some Chinese companies are punished for human rights violations, others for participating in the construction and militarization of illegal artificial islands in the South China Sea. Also, other reasons are connections with the Chinese military and involvement in the theft of American trade secrets.
SMIC is the largest chipmaker in China, but not as strong as Taiwan Semiconductor Manufacturing Company (TSMC). Photo: CEP
Chinese companies that have been on this list in the past include Huawei Technology Corporation (and 150 branches), ZTE company, Hikvision …
Before the information of the sanction was officially confirmed by the United States, China’s Foreign Ministry announced the above action on December 18, showing that the United States suppressed the Chinese company and that Beijing will continue to take “necessary measures.” . to protect your interests.
SMIC has been on Washington’s radar for a long time. In September 2020, the US Department of Commerce requested companies that supply certain devices to SMIC to obtain an export license because “there is a risk that these devices will be used for military purposes.” In November, the US Department of Defense blacklisted SMIC of companies “affiliated with or belonging to the Chinese military,” thus prohibiting US investors from buying SMIC shares starting late next year.
With the most recent sanctions list from the US Department of Commerce mentioned above, SMIC must request a special license from this department to receive important goods from a certain US supplier. In addition to the main company, about 10 branches SMIC’s are also blacklisted, according to Ross.
SMIC is the largest chip manufacturer in China. The SMIC’s sanctions action is President Donald Trump’s latest step in consolidating his tough legacy with China.
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