The Pentagon fears that SMIC has links with Chinese military. SMIC is a provider of chips to China-headquartered Huawei
Semiconductor Manufacturing International Corporation (SMIC) might be the next on list of bans being faced by several China-based chip companies. A report by BBC mentioned that the Pentagon has proposed that SMIC be blacklisted from doing business.
The move, if implemented, would restrict suppliers of America’s tech, from supplying to SMIC. China has firmly opposed the proposal.
SMIC, in a response released a statement that read, “SMIC solemnly declares that the Company, a public company listed on the Hong Kong Stock Exchange and the Sci-Tech Innovation Board (STAR Market), is an international semiconductor foundry strictly complying with the laws and regulations of all jurisdictions where it performs its businesses. Since its inception, the Company has been fully compliant with all rules and laws. SMIC has maintained long-term strategic partnerships with multiple U.S.-based semiconductor equipment suppliers.”
“Over the years, the Bureau of Industry and Security (BIS) has granted numerous export licenses for the Company. With a large and diverse customer base, serving companies in the U.S., Europe, and other Asian regions, SMIC plays an important role in the global semiconductor supply chain. The Company manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses. We have no relationship with the Chinese military,” it continued.
It is to be noted here that the tensions between China and America started with the arrest of a Huawei executive in 2019. SMIC supplies chips to Huawei as well as Qualcomm among other clients.If the proposal is finalised and summoned, SMIC would not be able to upgrade software of any of its US-sourced machines.
“In and before 2016, SMIC had been granted Validated End-User (VEU) authorization by the BIS and the company hosted several visits from U.S. Government officials. Any assumptions of the Company’s ties with the Chinese military are untrue statements and false accusations. The Company is in complete shock and perplexity to the news. Nevertheless, SMIC is open to sincere and transparent communication with the U.S. Government agencies in hope of resolving potential misunderstandings,” read the statement released by SMIC.