Aug 19, 2024 12:16:00

Chinese semiconductor company AMEC sues the US Department of Defense, claiming that the US's certification as a military company is unfair

Advanced Micro-Fabrication Equipment Inc. China (AMEC) , a semiconductor manufacturing equipment manufacturer designated by the U.S. Department of Defense as a 'Chinese military company,' has filed a lawsuit against the Department of Defense, claiming that it has suffered 'serious and irreparable damages as a result of being designated a military company based on insufficient evidence.'

Chinese chip tool maker AMEC sues US defense department over 'military company' designation | South China Morning Post
https://www.scmp.com/tech/tech-war/article/3274799/chinese-chip-tool-maker-amec-sues-us-defence-department-over-military-company-designation

The US Department of Defense has compiled a list of 'Chinese military companies operating in the United States' under Section 1260H of the National Defense Authorization Act of 2021, and prohibits the Department of Defense from entering into contracts for the sale of products or the provision of technology with companies on the list. The list of Chinese military companies has been updated several times since its first edition was published in 2021, and was most recently updated on January 31, 2024.

AMEC was listed on the Chinese military enterprise list in 2021, but was removed from the list in late 2021. However, when you check the updated (PDF file) list , you can see that AMEC's name is listed again.

When AMEC inquired to the Department of Defense about why the company was on the list, the only reason given was a 'certificate of merit awarded by the Ministry of Industry and Information Technology in 2019.' AMEC filed a complaint in the U.S. District Court for the District of Columbia alleging that 'the U.S. Department of Defense's designation of the company as a Chinese military company lacks legal basis,' '(the designation as a military company) has halted our long-planned and smoothly progressing business expansion efforts in the U.S.,' and 'the designation as a military company has caused serious and irreparable harm to the company.'

Regarding the Chinese military company list, in 2021, Chinese smartphone manufacturer Xiaomi argued that its inclusion on the list was inappropriate and won its removal from the list.

Xiaomi and the US government reach a settlement, Xiaomi is removed from the blacklist - GIGAZINE