US government regulates exports to SMIC, a major Chinese semiconductor manufacturer, has a major impact on Huawei



It is reported that the U.S. government plans to require the government to apply for a permit to export to SMIC, saying that the equipment of

SMIC , China's largest semiconductor foundry, 'has a military unacceptable risk'. I did. China's semiconductor business will be further threatened by the US government's restrictions on exports to SMIC.

US tightens exports to China's chipmaker SMIC, citing risk of military use | Reuters
https://www.reuters.com/article/us-usa-china-smic-idUSKBN26H0LN

US imposes trade sanctions on China's largest chipmaker SMIC --SiliconANGLE
https://siliconangle.com/2020/09/27/us-imposes-trade-sanctions-chinas-largest-chipmaker-smic/

US Moves to Cut Off Chinese Chipmaker SMIC With New Sanctions | Tom's Hardware
https://www.tomshardware.com/news/us-moves-to-strangle-chinese-chipmaker-smic-with-new-sanctions

Regarding SMIC's trading restrictions, Reuters reports that the US government was considering adding SMIC to the sanctions list in September 2020.

The United States is considering adding SMIC, a major semiconductor manufacturer, to the 'sanctions list' --GIGAZINE



According to Commerce Department documents obtained by Reuters, American companies that export certain equipment to SMIC will need to apply for export licenses individually in the future. Reuters says the mandatory permit application is a sign of a US government policy shift, as the Commerce Department has not previously required a permit to export to SMIC.

It is said that the US government considered export restrictions to SMIC when HSMC, the same Chinese semiconductor company, faced a crisis of bankruptcy. HSMC was promoting a project to build a 7nm process production line with a fund of 18.5 billion dollars (about 1.9 trillion yen), but it was reported that it failed due to lack of funds and was in a difficult situation. It was.

China's semiconductor manufacturing industry is in trouble due to lack of funds --GIGAZINE



Tom's Hardware, a tech news site, pointed out that SMIC has become the largest chip producer in China due to the decline in HSMC's productivity. Until now, it had produced 6,000 14nm process chips a month, but plans to expand the production line to 35,000 a month by the end of September 2020.



In addition, up to 20% of SMIC's revenue is said to come from transactions with Huawei. Tom's Hardware, because Huawei is no longer able to deal with TSMC is a semiconductor foundry in Taiwan, and have come to depend on the production of the chip to SMIC was reported . As a result, restrictions on trading with SMIC are expected to have a major impact on Huawei.

'From an international economic perspective, tightening regulations on Chinese giants like SMIC and Huawei will have a significant spillover effect throughout the global supply chain,' said Nicholas Klein, a lawyer specializing in international trade. It is highly likely that the Chinese government will respond retaliatoryly to this export regulation.

'We have not received any official notice of export restrictions,' SMIC said. 'We do not manufacture products to the military or munitions companies, regardless of the Chinese military.'

in Hardware, Posted by log1i_yk