US President Trump's administration is considering blacklisting SMIC, China's largest chipmaker, which would make it very difficult for the company to do business with US companies.
A spokesman for the Pentagon in Washington said on Friday that discussions are currently being held about the possible listing of SMIC on the blacklist.
The Trump administration has been taking measures to ban certain Chinese companies from the US for some time.
Currently, 275 companies are blacklisted. Well-known examples include telecom manufacturer Huawei and the producer of surveillance cameras Hikvision.