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U.S. considers banning key exports to Chinese chipmaker SMIC

U.S. considers banning key exports to Chinese chipmaker SMIC

The Wall Street Journal reported on Thursday that US officials are contemplating debating a Defense Department proposal this month to fix regulatory gaps that have allowed Chinese chipmaker SMIC to purchase crucial US technology. According to the Journal, some Commerce Department officials are attempting to obstruct the Defense Department's request, citing sources familiar with the situation.

Due to its alleged links to China's military, Semiconductor Production International Corporation (SMIC) was put to a US blacklist last year, denying it access to advanced manufacturing equipment from US vendors. The Wall Street Journal reported on Thursday that US officials are contemplating debating a Defense Department proposal this month to fix regulatory gaps that have allowed Chinese chipmaker SMIC to purchase crucial US technology.

According to the Journal, some Commerce Department officials are attempting to obstruct the Defense Department's request, citing sources familiar with the situation. Due to its alleged links to China's military, Semiconductor Production International Corporation (SMIC) was put to a US blacklist last year, denying it access to advanced manufacturing equipment from US vendors. A request for comment on the report was not immediately returned by SMIC, China's largest contract chipmaker.

According to the Journal, US authorities are considering putting additional Chinese technology businesses to the Commerce Department's entity list and the Treasury Department's list of corporations that are prohibited from investing in the US in the coming months. The US House of Representatives passed legislation on Wednesday banning imports from China's Xinjiang province due to fears of forced labor.

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