Semiconductor Manufacturing International Corp (SMIC) denied being involved with China’s military, as it responded to reports the US government was considering adding the company to a trade blacklist.
The company called for dialogue with the US, stating it has “no relationship” with China’s military and was in “complete shock” about reports a ban was being considered.
“Any assumptions of the company’s ties with the Chinese military are untrue statements and false accusations,” it said, adding it has a strong track record of complying with international laws and maintained long-term strategic partnerships with multiple US-based semiconductor equipment suppliers.
It follows a Reuters report last week that the US government was investigating SMIC’s links with China’s military and could add it to a Department of Commerce (DoC) trade blacklist, blocking access to key components.
Richard Windsor, founder of research blog Radio Free Mobile, said a block would be a devastating blow, because SMIC is even more dependent on US technology than Huawei, which was added to the same DoC list in May 2019 [1].
There are now more than 275 Chinese companies on the DoC blacklist, including Huawei rival ZTE, Reuters reported.
Huawei is a long-standing SMIC customer, but in 2019 reportedly began increasing its reliance on the company for its HiSilicon business to offset US trade restrictions on Taiwan Semiconductor Manufacturing Company.
[1] https://www.mobileworldlive.com/featured-content/home-banner/huawei-lands-on-us-trade-blacklist
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