SMIC is on the Entity List have a significant adverse impact on 10nm processes

On December 18, the US Department of Commerce included SMIC and some of its subsidiaries and shareholding companies in the “Entity List” on the grounds of protecting US national security and diplomatic interests.

SMIC supply Huawei

According to SMIC, after the company is included in the “Entity List”, in accordance with relevant US laws and regulations, for products or technologies that are applicable to the US “Export Control Regulations”, suppliers must obtain an export license from the US Department of Commerce before they can supply products to the other companies.

SMIC said in the announces:

According to the company’s preliminary assessment, the matter has no significant adverse impact on the company’s short-term operations and financial status, and has a significant adverse impact on the R&D and capacity construction of advanced processes of 10nm and below. The company will continue to communicate with relevant departments of the U.S. government, and depending on the situation Take all feasible measures, actively seek solutions, and strive to minimize adverse effects.