SMIC Has Not Received Any Confirmation on US Restrictions

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Several media houses have recently reported that the United States administration has restricted US companies from exporting semiconductor tech without obtaining a license

China’s biggest semiconductor player Semiconductor Manufacturing International Corporation (SMIC), through an official statement has noted that it has not received any official information about recent US restrictions. The company also noted that it has no relationship with the Chinese military and does not manufacture for any military end-users or end-uses.

“Semiconductor Manufacturing International Corporation noted that a document suspected to have been issued by the Bureau of Industry and Security of the United States Department of Commerce was sent to the Company by media asking for confirmation or forwarded online on Saturday, 26 September 2020. According to the document, some products exported to SMIC, its subsidiaries and joint ventures will be subject to export control,” read SMIC’s official statement.

Meanwhile, the company’s shares opened 7.64 percent lower at HK$17.10 this monday morning. SMIC is China’s biggest contract manufacturer of chipsets.

The Entity list

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First reported by the Washington Post, the media house noted that it has reviewed a letter issued by the agency in the same regard. The United States’ commerce department fears that tech exports to China’s biggest semiconductor manufacturer might benefit the Chinese military.

As per the new mandate, companies exporting tech to SMIC, will now have to acquire a license from the United States administration in order to continue doing the same. Several China-based semiconductor manufacturers including SMIC, rely on software and machinery provided by the companies headquartered in the United States.

SMIC, freshly added to the Entity List prepared by the United States administration, had started as a private company. The Entity List now has approximately 300 names.

“As of the date of this announcement (27 September 2020), the Company has not received such official information. 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,” SMIC has clarified.

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