The United States has imposed additional trade restrictions on the largest Chinese chip maker Semiconductor Manufacturing International Corporation (SMIC). If US companies want to do business with SMIC, they are now subject to rules that govern trade with companies that make military applications. This is evidenced by documents from the US government.
Although SMIC’s American trading partners are subject to stricter rules, SMIC is not on the so-called ‘entity list’. This means that the restrictions are not yet as strict as for Huawei, for example. Washington’s intervention may further intensify the pre-existing tensions between China and the US.
The Chinese company itself says it has not yet received an official notification of the sanctions. SMIC stressed in a statement that it has no ties to the Chinese armed forces. The company also says it does not make any products for military applications at all.
The main supplier of SMIC is the Dutch chip machine manufacturer ASML. According to recent data from Bloomberg news agency, 11 percent of all capital investment of the Chinese company goes to ASML equipment.