The United States is considering blacklisting SMIC, China's largest chipmaker.
This would make it very difficult for the company to do business with American companies.
A White House spokesman said on Friday that discussions are currently underway on the possible listing of SMIC on the blacklist.
The administration of US President Donald Trump has long been taking measures to ban certain Chinese companies from the US.
Currently, 275 companies are blacklisted, including telecom manufacturer Huawei and Hikvision, a producer of surveillance cameras.