Semiconductor Manufacturing International Corp., known as SMIC, was recently put on Entity List or U.S. export control blacklist. Now, the company has said that the move will hamper the development of its cutting-edge technologies.
The company has released a statement after doing an initial assessment and said that “the U.S. move will badly affect the company’s Research & Development and the production capacity construction of advanced technologies of 10 nanometers and below.” It added that there’s no significant impact on the operation and finances in the short-term as the company isn’t mass-producing the chips using the 10nm technology.
SMIC getting banned by the United States is a major blow for the Chinese government which is working towards making the country self-sufficient when it comes to manufacturing semiconductors and the company is leading the campaign.
From the development, it appears that the United States is determined to thwart every effort of China or Chinese companies to procure components for advanced technologies. To provide components to the companies in the Entity List, the U.S.-based firms will have to apply for a special license.
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This is similar to the situation Huawei is facing right now, which was put on Entity List by the Trump administration in its ongoing US-China trade war. While the Executive Order from Trump cited national security risk, no evidence to back that claim has been produced. Huawei has time and again denied any such allegations against the company.
SMIC has said that the company will continue to cooperate with relevant U.S. government bodies and will be taking all feasible measures to minimize adverse effects and work out a solution to continue its development.
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