Sep 26, 2020 - World

U.S. puts export restrictions on China's top chipmaker

A logo hangs on the gate of the Beijing branch of Semiconductor Manufacturing International Corporation (SMIC) on September 6, 2020 in Beijing, China

Photo: Su Weizhong/VCG via Getty Images

The Trump administration put in place restrictions on U.S. technology exports to China's biggest chipmaker, Semiconductor Manufacturing International Corp., the WSJ reported Saturday.

Why it matters: The curbs are the latest restrictions issued by the Trump administration to limit China's efforts to compete in advanced technology, per WSJ.

Details: According to a Commerce Department letter, reviewed by the WSJ and other media outlets, U.S. companies will need licenses to export goods to SMIC due to an "unacceptable risk" that the products may be used for Chinese military purposes.

  • The letter, sent to U.S. firms on Friday, added that the controls will be in place “pending the U.S. government’s review of SMIC and its subsidiaries," per the Washington Post.

The other side: A SMIC spokeswoman cited by WSJ said in an emailed statement that the company continues "to engage constructively and openly" with the U.S. Department of Commerce.

  • “SMIC reiterates that it manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses. The Company has no relationship with the Chinese military and does not manufacture for any military end-users or end-uses,” the spokeswoman added.

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