Trump administration hits China's largest chip manufacturer SMIC with sanctions

midian182

Posts: 6,095   +50
Staff member
What just happened? Another Chinese tech firm is feeling the consequences of US-China tensions. After taking aim at Huawei, TikTok owner ByteDance, and Tencent, among others, the US government has now placed sanctions on China's largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC).

The US Department of Commerce has sent a letter to US companies informing them that, as is the case with Huawei, they will now require licenses before exporting certain products to SMIC. The agency wrote that exports "may pose an unacceptable risk of diversion to a military end use in the People's Republic of China."

SMIC is the backbone of China's plan to become technologically self-sufficient, thereby reducing its reliance on American firms for the hardware and software used in its public institutions. The country's government hopes SMIC will play a major role in its "Made in China 2025" initiative, in which 70 percent of the semiconductors used by the country are homegrown by 2025.

Back in June, the SMIC delisted from the New York Stock exchange to make a public offering on Shanghai's STAR Market, raising $7.6 billion. Having already been affected by the Huawei sanctions, SMIC warned in its IPO prospectus that the US government could tighten the screws even further.

SMIC uses US equipment and software in its manufacturing process. As noted by the Financial Times, the sanctions could end up hitting Qualcomm, which is thought to be SMIC's second-largest company after Huawei. It also counts Broadcom among its clients.

SMIC says it has not been notified of the sanctions by the US government, adding it "has no relationship with the Chinese military, and does not manufacture for any military end users or end uses."

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Endymio

Posts: 689   +553
>> " SMIC [says] it "has no relationship with the Chinese military, and does not manufacture for any military end users or end uses."

Anyone who believes this, please raise your hand. This action is long overdue. SMIC is not only indirectly assisting the Chinese military in its human-rights and other abuses, but the vast majority of its IP was stolen from US, Taiwanese, and European firms.
 

quadibloc

Posts: 216   +127
Given that Huawei is admitted to be an SMIC customer, this means that SMIC is assisting Huawei in defying U.S. sanctions for trading with Iran. Obviously, any chip manufacturing capability within China itself gives China the ability to defy U.S. sanctions, modernize its military, and so on and so forth. So China will not be able to take shortcuts by piggybacking on U.S. technology - if they want to make 10nm or 7nm chips, they will now have to make the advanced chipmaking machines themselves.

And it's nice to know that even if TSMC and Samsung are outside the U.S., the success of those firms is because of advanced technology coming from the U.S..
 
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dangh

Posts: 146   +171
I think US is pushing China greatly for the technological independence. Shortly they will become biggest economy with no technological limitations. I'm glad to see EU working with them on this front as well.
 

grumblguts

Posts: 355   +305
I think US is pushing China greatly for the technological independence. Shortly they will become biggest economy with no technological limitations. I'm glad to see EU working with them on this front as well.
China science is low in complexity.
They are fine at copying but lack insight to think for themselves.
 
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kiwigraeme

Posts: 132   +93
China science is low in complexity.
They are fine at copying but lack insight to think for themselves.
Ha ha ha - That's what everyone said about Japan, Taiwan and Korea - keep up the racist diatribe ( TBF probably just wishful thinking and ignorance ) - The USA was built on stolen IP from Britain and Europe - I think they probably lead the world in a lot of things - Drones, rare metal processing etc etc .

You do know under previous govts. the USA - and still Europe and the UK and been targetting the best brains from around the world - much like pro sports teams .

Stop the lazy racist thinking.

Don't worry hate the middle class whites who bang on about racism and then feel they must protect all the coloured people of their behalf - I spent 10 years travelling the world - listening to their **** - oh people here are so more spiritual - oh you can't prank the locals ( FFS man - it's a game tourists and locals have played forever )
 

Daniele 00

Posts: 58   +52
The rest of world look at USA as a bully, arrogant and lier country. This is your historical legacy. (This to answer to previous comments).
Back in-topic, I'm confident that China and the east in general will gain over time after they depart from west.
 
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sac39507

Posts: 326   +150
Ha ha ha - That's what everyone said about Japan, Taiwan and Korea - keep up the racist diatribe ( TBF probably just wishful thinking and ignorance ) - The USA was built on stolen IP from Britain and Europe - I think they probably lead the world in a lot of things - Drones, rare metal processing etc etc .

You do know under previous govts. the USA - and still Europe and the UK and been targetting the best brains from around the world - much like pro sports teams .

Stop the lazy racist thinking.

Don't worry hate the middle class whites who bang on about racism and then feel they must protect all the coloured people of their behalf - I spent 10 years travelling the world - listening to their **** - oh people here are so more spiritual - oh you can't prank the locals ( FFS man - it's a game tourists and locals have played forever )
So tired of ignorant people using racism at every opportunity. Only people with low IQ would use racism in any discussion. Racism is thrown in by the real racists when there is nothing intelligent to say. I'm Asian but I despise the CCP. People like you forget that the CCP and the Chinese people are two different things. Just because someone comments about the corruption of the CCP doesn't mean they hate the Chinese people or that they are racist. There are plenty of intelligent Chinese working here in the U.S. contributing to the Tech sector and are faithful proud Americans that are not spying for the CCP and America is happy to have them.
 
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jpuroila

Posts: 235   +127
Biggest thief in the world is CHINA.
World needs to wake up.
Glad the UK is avoiding 5g from china and those 2 power stations would of been a desaster.
Imagine it.
a communist state having finger on a nuke power station on british soil.
Lol. As if US isn't the bigger thief, or china is communist in anything but name
 

Endymio

Posts: 689   +553
Lol. As if US isn't the bigger thief...
I can name dozens of major IP thefts by China just in the last decade-- the FBI currently has 2,500 open cases against China for criminal theft of trade or military secrets at present, which is just a tiny slice of the much larger number of civil thefts which have occurred. What can you name that the US has stolen from China?

..., or china is communist in anything but name.
In this case, it is the name that matters. To enforce its 'Communist' image, even if in name only, the PRC requires a totalitarian form of government.