Explainer | ASML, Huawei and Qualcomm may be caught in the crossfire as SMIC runs risk of US blacklist in escalating tech war
- The US makes up the biggest geography of origin for SMIC’s suppliers, with US-listed companies making up 10 of the top 30 vendors
- China was the country of origin for 13 of SMIC’s 38 biggest customers, or 34 per cent of the total, as of August 14
The Trump administration is considering whether to add SMIC to a trade blacklist, which would force US suppliers to seek a difficult-to-obtain licence before shipping to the company, a Pentagon spokeswoman told Reuters on Friday.
Here’s a look at SMIC’s relationship with its publicly traded suppliers and customers, based on financial data from exchange filings compiled by Bloomberg analytics.
Who is SMIC’s biggest supplier?
ASML Holding, the world’s largest maker of photolithography machines vital in the production of integrated circuits, is the biggest supplier to SMIC. The company, based in Veldhoven of the Netherlands, accounted for 11 per cent of SMIC’s capital expenditure as of April 2, according to Bloomberg’s data. SMIC made up 0.12 per cent of the Dutch company’s revenue in the same period.
Which countries do most of SMIC’s suppliers come from?
The US makes up the biggest geography of origin for SMIC’s suppliers, with US-listed companies making up 10 of the top 30 vendors. The biggest American supplier is Lam Research of Fremont, California, a producer of plasma etching machines used in the production of silicon chips. Lam Research contributed to 8.5 per cent of SMIC’s expenditure as of May 4, earning 1.1 per cent of its revenue from the Chinese company.
Companies listed on mainland China’s exchanges make up the second-largest group, with six among SMIC’s top 30 suppliers. Taiwan is third with four suppliers, followed by South Korea, Japan, Germany and Israel in equal fourth place with two companies each.
Who is SMIC’s biggest Chinese supplier?
Shanghai-listed National Silicon Industry Group, which produces silicon wafers, is the most vulnerable Chinese supplier to any disruptions at SMIC. National Silicon earned 26.5 per cent of its revenue from SMIC, as of July 1. National Silicon made up 2.3 per cent of SMIC‘s capital expenditure on the same period.
Who is SMIC’s biggest customer?
Who is SMIC’s biggest American customer?
Qualcomm, whose chips are used in the mobile phones made by Apple, Motorola and Samsung Electronics, would be the biggest US customer affected by any disruption at SMIC. The Chinese company made up 3.9 per cent of Qualcomm’s cost of goods sold as of August 14. Sales to the US company, based in San Diego, California, made up 8.6 per cent of SMIC’s revenue, data showed.
Where are most of SMIC’s customers located?
China was the country of origin for 13 of SMIC’s 38 biggest customers, or 34 per cent of the total, as of August 14, making up about a fifth of the chip producer’s revenue, according to Bloomberg data. The second-biggest group of customers are based in Taiwan, at 26 per cent. The United States is in third place with US-based customers making nine of the top 38, or 24 per cent, while South Korea is in fourth place with three customers.
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