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US-China trade war
WorldUnited States & Canada

US tightens exports to China’s biggest chip maker SMIC, citing risk of military use

  • US companies may now need to get licences to ship certain goods to SMIC for its purported links to the Chinese military
  • The company said it had not received any official notice of the restrictions and has denied having any military ties

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A SMIC company logo is seen at a factory in Shanghai. Photo: EPA
Reuters
The United States has imposed restrictions on exports to China’s biggest chip maker SMIC after concluding there is an “unacceptable risk” equipment supplied to it could be used for military purposes.

Suppliers of certain equipment to Semiconductor Manufacturing International Corporation will now have to apply for individual export licences, according to a letter from the Commerce Department dated Friday and seen by Reuters.

The latest move marks a shift in US policy from earlier this year, when applicants seeking “military end user” licences to sell to SMIC were told by the Commerce Department that the licences were not necessary, according to three people familiar with the matter.

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SMIC said it had not received any official notice of the restrictions and said it has no ties with the Chinese military.

“SMIC reiterates that it manufactures semiconductors and provides services solely for civilian and commercial end users and end-uses,” SMIC said.

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“The Company has no relationship with the Chinese military and does not manufacture for any military end users or end-uses.”
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