SMIC, one in every of largest chip makers on this planet, is amongst a number of firms that the Department of Defense plans to designate as being owned or managed by the Chinese navy, studies Reuters. Earlier this month, President Donald Trump signed an govt order, set to enter impact on January 11, that might bar U.S. buyers from shopping for securities from firms on the protection blacklist.
In a press release to Reuters, SMIC mentioned it continues “to have interaction constructively and brazenly with the U.S. authorities” and that it “has no relationship with the Chinese navy and doesn’t manufacture for navy end-users or end-uses.”
The largest semiconductor maker in China, SMIC holds about 4% of the worldwide foundry market, estimates market analysis agency TrendForce. Its U.S. clients have included Qualcomm, Broadcom and Texas Instruments.
There are at present 31 firms on the protection blacklist. SMIC is one in every of 4 new firms that the Department of Defense plans so as to add, in line with Reuters. The others are China Construction Technology, China International Engineering Consulting Corp and China National Offshore Oil Corp (CNOOC).
The firm delisted from NYSE in May 2019, but it surely mentioned that the choice was prompted by the restricted buying and selling quantity and excessive administrative prices, not the U.S.-China commerce battle or the U.S. authorities’s blacklisting of Huawei and different Chinese tech firms.
China’s largest chipmaker is delisting from the NYSE
SMIC has already been impacted by export restrictions that forestall them from buying key tools from American suppliers. At the start of October, it advised shareholders that export restrictions set by the U.S. Bureau of Industry and Security might have “materials hostile results” on its manufacturing.
The govt order, and the doable addition of recent firms to the protection blacklist, is in-line with the Trump administration’s onerous stance towards Chinese tech firms, together with Huawei, ZTE and ByteDance, that it claims are a possible nationwide safety risk via their alleged ties to the Chinese authorities and navy. But the way forward for numerous the present administration’s insurance policies after the Joe Biden assumes the presidency on January 20 is unsure.
TechCrunch has contacted SMIC for remark.
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