In the case of SMIC, the blacklisting is due to the company’s alleged relations with the Chinese military. US companies will now need to obtain special permits to supply SMIC with advanced technologies.
“We will not allow advanced American technologies to help build an army of increasingly aggressive adversaries,” said Secretary of Commerce Wilbur Ross.
The ministry has also added more than 60 other companies to the blacklist. The reasons for their listing include, in addition to supporting the Chinese military, for example, assisting the Chinese government in taking action against dissidents or participating in the theft of trade secrets.
The Chinese Foreign Ministry described the blacklisting of companies as further evidence of US repression by Chinese companies. He noted that China would continue to take the “necessary measures” to protect its rights.
SMIC acquires key chip manufacturing equipment from US companies. It was founded twenty years ago, but despite state support, it still lags behind Taiwan’s competitor Taiwan Semiconductor Manufacturing (TSMC) in terms of production volume and technology.
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