Semiconductor Manufacturing International Corporation (SMIC) was recently included in the entity list or the US export control blacklist. Now, the company says that this move will hinder the development of its cutting-edge technology.
The company issued a statement after conducting preliminary assessments and stated: “The US move will seriously affect the company’s R&D and capacity building of advanced technologies of 10nm and below.”
It added that because the company did not use 10nm technology for mass production Chips, therefore, will not have a significant impact on operations and finances in the short term.
SMIC’s ban by the United States is a major blow to the Chinese government, which is striving to make China self-sufficient in manufacturing semiconductors, and the company is leading this movement.
From the perspective of development, the United States seems determined to thwart all efforts by China or Chinese companies to purchase components for advanced technology. In order to provide components to companies on the entity list, companies located in the United States must apply for a special license.
This is similar to the situation currently facing Huawei. The Trump administration included it on the list of entities in its ongoing Sino-US trade war.
Although Trump’s executive order mentions national security risks, there is no evidence to support this claim. Huawei has repeatedly denied any such allegations against the company.
SMIC has stated that the company will continue to cooperate with relevant US government agencies and will take all feasible measures to minimize adverse effects and propose solutions to continue development.