US imposes restrictions on exports to China’s chipmaker

SHANGHAI/WASHINGTON, September 26

The United States has imposed restrictions on exports to China’s largest chipmaker SMIC after concluding there’s an “unacceptable risk” tools provided to it might be used for navy functions.

Suppliers of sure tools to Semiconductor Manufacturing International Corporation will now have to use for particular person export licenses, in keeping with a letter from the Commerce Department dated Friday.

The newest transfer marks a shift in US coverage from earlier this 12 months, when candidates looking for “military end user” licenses to promote to SMIC had been instructed by the Commerce Department that the licenses weren’t crucial, in keeping with three individuals aware of the matter.

SMIC mentioned it had not acquired any official discover of the restrictions and mentioned it has no ties with the Chinese navy. “SMIC reiterates that it manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses,” SMIC mentioned. — Reuters

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