The Trump administration is considering export controls for the largest chipmaker and producer of semi conductors in China, Semiconductor Manufacturing International Company, a spokesperson for the defence ministry said.
The Department of Defense is debating. Whether SMIC can be added to the registry of legal organisations issued by the Department of Commerce. Which essentially prohibits the corporation from purchasing such products made in the United States.
US bans the top Chinese chipmaker
The step by the administration is part of a continuing campaign. It’s also to place pressure on China’s tech giants. It also marks a major expansion in the fight over technology between the US and China.
In China SMIC is considered to be a main chipmaker. Efforts to revitalize the domestic semi conductor market, Optimism fueled by the trade war between the US and China. SMIC export restrictions would also impact US companies who market chip processing technologies to Chinese manufacturers.
The US – China tech war is rising
The list of U.S. firms currently comprises more than 275 businesses located in China, according to Reuters. Reuters first mentioned that blacklisting of SMIC could be feasible.
Recently U.S. authorities announced they would tighten controls even more. Huawei Technology in China to clamp down on industrial chips for telecommunications firms
Because of those limitations, without a special license, Huawei can not procure semiconductors. SMIC is one of the suppliers at Huawei.
U.S. authorities are also imposing sanctions on Huawei to various countries around the world as tensions between the U.S. and China escalate, alleging that the firm would supply data to the Chinese government for espionage. Huawei denied China had been spying on it.
Last month, the Trump administration also released an executive order banning purchases with ByteDance and is pressuring the firm to sell its famous TikTok app service in the US.