Skip to main content

SMIC braces for impact

  • TRIVIUM China

  • On Friday, the US Commerce Department told American companies that they would be required to obtain a license to sell components or software to China’s Semiconductor Manufacturing International Corporation (SMIC) and its subsidiaries.

    Some context: SMIC is China’s largest semiconductor manufacturer and is partially state-owned.

    According to a Commerce Department statement, exports to SMIC posed an “unacceptable risk” of being diverted to military end-use applications.

    The full extent of US export restrictions are not yet clear:

    • SMIC has not been placed on the Commerce Department’s Entity List, which would vastly limit the company’s ability to source key technology and components
  • he Commerce Department’s restrictions are reportedly based on a rule forbidding the export of certain items believed to be destined for military end-use.
But either way, it’s bad news for Beijing:
  • SMIC is one of the national champions at the forefront of Beijing’s drive to develop a strong indigenous chip making industry. US sanctions have the potential to badly curtail SMIC’s operations.
On Sunday, SMIC released a statement denying ties with the Chinese military:
  • “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
Meanwhile, when asked about the development on Monday, a spokesperson for the Ministry of Foreign Affairs gave a typically-worded response about China's plan to "adopt necessary countermeasures" and "safeguard the legitimate rights of Chinese enterprises." 
  • Read: We'll wait to see how this plays out.
Get smart: The need for Beijing to develop US-free supply chains for key tech components, including a robust and competitive domestic semiconductor industry, becomes clearer to Chinese leaders by the day.

read more

FT: China’s biggest chipmaker SMIC hit by US sanctions

NYT: U.S. Places Restrictions on China’s Leading Chip Maker


Caixin: 商评|一旦美商务部对中芯国际下“禁令”,影响几何


Popular posts from this blog

Menon meets Karzai, discusses security of Indians

Kabul/New Delhi/Washington, March 5 (IANS) India Friday said that the Feb 26 terror attack in Kabul will not deter it from helping rebuild Afghanistan as National Security Adviser Shivshankar Menon met Afghan President Hamid Karzai in Kabul to review the security of around 4,000 Indians working in that country. Menon, who arrived here Friday morning on a two-day visit, discussed with Karzai some proposals to bolster security of Indians engaged in a wide array of reconstruction activities, ranging from building roads, bridges and power stations to social sector projects. The Indian government is contemplating a slew of steps to secure Indians in Afghanistan, including setting up protected venues where the Indians working on various reconstruction projects will be based. Deploying dedicated security personnel at places where Indians work is also being considered. Menon also met his Afghan counterpart Rangin Dadfar Spanta and enquired about the progress in the probe into the Kabul atta

Iran is losing the game to regional actors in its strategic depth

Rethink before It’s Too Late Iran is losing the game to regional actors in its strategic depth –Afghanistan. By Houman Dolati It is no more a surprise to see Iran absent in Afghanistan affairs. Nowadays, the Bonn Conference and Iran’s contributions to Afghanistan look more like a fading memory. Iran, which had promised of loans and credit worth five-hundred million dollars for Afghanistan, and tried to serve a key role, more than many other countries, for reconstruction and stabilization of Afghanistan, is now trying to efface that memory, saying it is a wrong path, even for the international community. Iran’s empty seat in the Rome Conference was another step backward for Afghanistan’s influential neighbor. Many other countries were surprised with Iran’s absence. Finding out the vanity of its efforts to justify absence in Rome, Iran tried to start its

Pakistani firm whose chemicals were used to kill US troops seeks subsidy for Indiana plant

By Jennifer Griffin, Justin Fishel Published March 22, 2013   A Pakistani fertilizer maker whose chemicals have been used in 80 percent of the roadside bombs that have killed and maimed American troops in Afghanistan is now seeking U.S. taxpayer subsidies in order to open a factory in Indiana.  The request appears to be on hold pending further review, but the situation has stirred outrage in Congress, where some accuse the Pakistani government of halting efforts to clamp down on the bomb-making.  For the past seven years, the U.S. government has known that the raw material calcium ammonium nitrate, or CAN, is making its way across the border into Afghanistan where the Taliban use it to fuel their most deadly weapons, namely the improvised explosive device. IEDs have long been the number one killer of U.S. and coalition troops.  The material largely comes from Pakistani fertilizer maker the Fatima Group. But the Pakistani government has stymied attempts by the Pentagon to stop the