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U.S. sanctions another Chinese tech firm and threatens to put it on the Entity List

by
Zaylee Amalia
09/27/2020

The United States is once again trying to bring pain to a Chinese technology company, this time the International Corporation of Semiconductor Products (SMIC). According to the Financial Times, U.S. companies must obtain a license before allowing certain goods to be shipped to China’s largest foundation. The U.S. fears that there is an “unacceptable risk” that chips manufactured by SMIC may end up being used for military goods.

SMIC has come under attack from the United States

SMIC received a letter from the U.S. Department of Commerce explaining the new requirement. However, Foundry said in an emailed statement that no official notification of the new rules has been received yet; It added that it has no ties with the Chinese military and does not manufacture chips for military use. The punishment imposed on Huawei by the United States is not as severe. However, the United States is considering tougher action against SMIC, and the company could be added to the list. Back in May 2019, the U.S. added to that list, preventing it from accessing the U.S. supply chain. U.S. companies also need to obtain licenses before doing business with the manufacturer.

SMIC is the largest foundation in China

Kevin Wolf, Akin Gump’s export control lawyer, and a senior official in the Commerce Department can explain the difference between the military’s end use laws that SMIC should live in now and the list of institutions that may face it in the future. The Obama administration. Wolf says, “Military end use laws apply only to a subcategory of listed U.S. origin items. Institutional list rules apply to all U.S. origin and some items of foreign origin.”

According to analysts at securities firm Jeffries, the United States is intensifying its attack on China’s semiconductor industry and is obliged to include more companies. As you might expect, the Chinese government is not happy. Foreign Ministry spokesman Zhao Lijian accused the United States of “blatant harassment.” “What it has done is violate international trade laws, borrow and damage the global industrial supply and value chain, which will inevitably harm the national interests of the United States and its image.” Geoffrey believes that half of SMIC’s equipment comes from the U.S., and according to the securities company, the company is valued at approximately $ 29 billion and does business with major U.S. chip makers, including Qualcomm and Broadcom.

When the U.S. implemented a rule change in May, it gave the manufactured chips to TSMC until September 15 to ship. Huawei. The foundation rule that uses American technology to obtain a license (again) before the cut is granted.Edge IC to the company. Some believed that it would address the needs of Huawei SMIC. Yes, the second company finished production of the Kirin 710A, a mid-range chip for the semiconductor unit. But it was manufactured at SMIC’s 14nm top processing node, and Foundry confirms that it’s not yet ready for prime time, which means it’s still ready to produce the 5nm chip chip needed for Huawei’s upcoming Mate 40 line and 5G radio. That is not. Its network equipment is required for the device. The area of the 14nm process node used in the Kirin 710A is approx. The 5nm chip transistors are 171.3 million square meters, compared to the 35 million found in.

SMIC’s N + 1 process is currently the closest it can reach to 7nm, providing 20% performance, 57% power efficiency, and 55% smaller than standard 14nm chips. Three years after TSMC began mass production of such chips, Foundry expects to reach the 7nm node mark next year. But the US has other ideas and it expresses its views through SMIC and SMIC via Huawei.