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

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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