A Pentagon spokeswoman mentioned the Protection Division was working with different companies to find out whether or not to make the transfer towards Semiconductor Manufacturing Worldwide Company, which might power US suppliers to acquire a particular license earlier than transport to the corporate.
SMIC didn’t instantly reply to an electronic mail searching for remark.
The Trump administration has usually used the entity record – which now contains greater than 275 China-based corporations – to hit trade sectors that China prioritizes, from telecoms tools giants Huawei Applied sciences and ZTE over sanction violations, to surveillance digicam maker Hikvision over suppression of China’s Uighur minority.
SMIC is the biggest Chinese language chip producer however is second-tier to rival Taiwan Semiconductor Manufacturing Co Ltd , the trade’s market chief. It has sought to construct out foundries for the manufacture of pc chips that may compete with TSMC.
Whereas the Pentagon official didn’t define the explanations for the motion, SMIC’s relationship to the Chinese language army is beneath scrutiny, one other US official mentioned.
Just lately the administration has educated its concentrate on Chinese language firms that bolster Beijing’s army. Final month, america blacklisted 24 Chinese language firms and focused people it mentioned had been a part of building and army actions within the South China Sea, its first such sanctions towards Beijing over the disputed strategic waterway.