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US slams sanctions on China’s biggest chip manufacturer

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US slams sanctions on China’s biggest chip manufacturer

US slams sanctions on China’s biggest chip manufacturer.

The US placed restrictions on exports to China’s largest chipmaker, SMIC, after deciding that the equipment supplied to it could be used for military purposes as a “unacceptable risk.”

According to a letter from the US Commerce Department dated Friday, suppliers of such equipment to Semiconductor Manufacturing International Corp will now have to apply for individual export licences.

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

SMIC claimed that it had not obtained any official notice of the constraints and said that it had no connection with the Chinese army. “SMIC reiterates that it produces semiconductors and offers facilities exclusively for end-users and end-uses for civilian and industrial use,” it said. “The corporation has no alliance with the army of China.”

SMIC is the new leading Chinese technology firm to face U.S. trade restrictions related to U.S. foreign policy activities or national security concerns. Huawei Technologies, the telecommunications giant, had its access to high-end chips curtailed by its inclusion to a blacklist of the business department known as the Organization List.

Hossana C. Infozer, you can link up with me via social media platforms @officialinfozer.

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