U.S. Department of Commerce imposed controls on SMIC
A few days ago, some media forwarded a document that was suspected to be issued by the Bureau of Industry and Security of the US Department of Commerce. The document shows that the US Department of Commerce has decided to impose controls on SMIC.
The so-called implementation of control is the same entity list as the previous Huawei ban. According to regulations, the United States or companies using American technology are not allowed to trade with the listed companies without authorization.
U.S. companies or foreign companies that use U.S.-based technology need to obtain prior approval from the U.S. Department of Commerce if they need to trade with listed companies, and cannot sell products without approval.
The Bureau of Industry and Security of the US Department of Commerce mentioned in a document issued that certain products targeted at SMIC and its subsidiaries and joint ventures will be subject to export controls.
The chip technology used by SMIC also contains American technology. As a semiconductor supply chain company, SMIC is involved in a variety of semiconductor products. At the same time, its products are not only for China but also for multiple markets around the world.
This is also true SMIC has previously stated that it abides by the laws and regulations of relevant countries, but even so, the US seems to be reluctant to let SMIC go.
If it is included in the list of regulated entities, SMIC’s follow-up technology and processes and products will be subject to various restrictions, which may also seriously affect the company.
SMIC also issued a timely announcement to clarify the news circulating on the Internet. SMIC stated that the company has not yet received official documents from the United States.
The reason given by the United States for SMIC seems to be military products, but SMIC also emphasized that the company only provides terminal products for civilian and commercial use.
Therefore, it is not yet clear how these documents are currently circulating. At least for now, SMIC has not received official notification from the United States.
Therefore, the credibility of the content circulated on the Internet should be relatively low before the official news is obtained. After all, the United States will give a buffer period even if it makes relevant decisions.
