Tag Archive : Restrictions

/ Restrictions

SHANGHAI (Reuters) – Chinese chipmaker Semiconductor Manufacturing International Corporation has undertaken “preliminary exchanges” with the U.S. Bureau of Industry and Security regarding export restrictions, the company said on Sunday in a filing.

FILE PHOTO: FILE PHOTO: A security officer stands outside a building of Semiconductor Manufacturing International Corporation (SMIC) during its grand opening in Shanghai November 22, 2001./File Photo

“The Company is conducting assessments on the relevant impact of such export restrictions on the company’s production and operation activities,” the filing to the Hong Kong Stock Exchange said.

SMIC also said it has been operating in compliance with the relevant laws and regulations of all jurisdictions where it performs its businesses.

The company also advised shareholders and potential investors “to exercise caution when dealing in the securities of the Company.”

In September, Reuters reported that the Bureau of Industry and Security under the Department of Commerce had issued letters informing

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US wariness of Chinese tech firms was underlined again Friday, when the Commerce Department sent a letter to companies in the states reportedly telling them they must get a license before exporting certain goods to China’s largest chipmaker, because of concerns about military use of technology.



a traffic light hanging off the side of a building: The Beijing branch of Semiconductor Manufacturing International Corporation. Su Weizhong/Getty Images


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The Beijing branch of Semiconductor Manufacturing International Corporation. Su Weizhong/Getty Images

The Commerce Department said in the letter that exports to Semiconductor Manufacturing International Corporation “may pose an unacceptable risk of diversion to a military end use in the People’s Republic of China,” according to a Saturday report by The New York Times.

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Last year, the US placed restrictions on companies selling gear to Chinese telecommunications giant Huawei , over concerns about Huawei’s relationship with the Chinese government and fears that its equipment could be used to spy on other countries and companies.

And popular video app TikTok,

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The US Commerce Department has added China’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), to its entity list, after it determined there an “unacceptable risk” that equipment SMIC received could be used for military purposes, Reuters reported.

The move blocks US computer chip companies from exporting technology to SMIC without an export license. SMIC is the latest major Chinese firm to be put on the entity list; the Trump administration added phone manufacturer Huawei to the list in 2019.

According to The Wall Street Journal, the Commerce Department wrote in a letter to the computer chip industry on Friday that exporting products to SMIC would “pose an unacceptable risk of diversion to a military end use in the People’s Republic of China.”

In April, the administration tightened export rules on shipping goods to China. It claims it’s seeking to keep US companies from selling products that could be used

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The Department didn’t directly comment on SMIC, but told Reuters it was “constantly monitoring and assessing” possible threats to US security and foreign policy.

SMIC, meanwhile, appeared to have been caught by surprise. A spokesperson said the chip giant hadn’t received any official word of restrictions and reiterated denials of any military link. The company offers chips and services “solely for civilian and commercial end-users and end-uses,” according to the representative.

The semiconductor producer is just the second top-tier company added to the entity list after Huawei. While the effect of the ban won’t be clear until the Commerce Department decides who (if anyone) gets a license, it could represent a significant blow to Chinese tech as a whole. SMIC may have to turn to non-US technology whenever it wants to upgrade its manufacturing or maintain hardware, and there’s no guarantee it will find what it needs. It could find

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WASHINGTON — The Trump administration has placed new restrictions on exports to Semiconductor Manufacturing International Corporation, China’s most advanced maker of computer chips, a measure that could deepen the technology conflict between China and the United States.

In a letter on Friday, the Department of Commerce told American companies in the chip industry that they must first acquire a license to sell technology to SMIC and its subsidiaries. The department said it was taking the action after a review in which it determined that the Chinese company “may pose an unacceptable risk of diversion to a military end use in the People’s Republic of China.”

The measure, which could cut SMIC off from the American software and other technology it needs to make its products, comes as the Trump administration takes a harsher stance against Chinese technology companies that it has deemed a national security threat. The administration has clamped

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