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US to add China's main SMIC chip foundry to blacklist

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Image source: vpk-news.ru

In an exclusive publication, Reuters claims that the trump administration is ready to add the leading Chinese chip manufacturer Semiconductor Manufacturing International Corporation (SMIC) and the third-largest Chinese oil and gas company China National Offshore Oil Corporation (CNOOC) to the blacklist of companies associated with the Chinese military, according to US data. Inclusion in the list will restrict these companies ' access to American investments.

Earlier this month, the Agency reported that the Ministry of defense intends to identify four more Chinese companies as owned or controlled by the Chinese military, bringing the number of Chinese companies on the list to 35. A recent Executive order by the President will ban US investors from buying securities of listed companies from the end of next year.

In addition to the above-mentioned SMIC and CNOOC companies, China Construction Technology Co Ltd and China International Engineering Consulting Corp will be added to the list. The Agency learned about this from three unnamed sources.

SMIC, which relies heavily on equipment from American suppliers, caught the attention of Washington back in September. At that time, the us Department of Commerce told some firms that they needed to obtain a license before delivering SMIC goods and services, because there was an "unacceptable risk" of using the supplied technologies for military purposes. For its part, SMIC said it continues to "engage constructively and openly with the U.S. government" and that ITS products and services are intended exclusively for civil and commercial use.

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