The administration of U.S. President Donald Trump may ban U.S. companies from trading with China’s largest microchip contract manufacturer, SMIC (Semiconductor Manufacturing International Corp.).
The U.S. Department of Defense confirmed to the Wall Street Journal (behind the payment wall) discussions about adding SMIC to the Department of Commerce’s blacklist.
It already has a Chinese Huawei.
WSJ is borrowed from Engadget, among others.
The boycott is not yet certain and may not materialize.
If that were to happen, however, it would be a major blow to SMIC, which would largely lose access to the American technology it uses to manufacture and test its chips.
According to TrendForce figures, SMIC is the world's fifth largest semiconductor contract manufacturer.
Its revenue last year was $ 791 million (€ XX million).
Only the Taiwanese TSMC, the South Korean Samsung, the American GlobalFoundries and the Taiwanese UMC are even bigger.
According to WSJ sources, the United States fears SMIC will help China's defense industry.
SMIC has denied this and assures that it will offer its chips for civilian use only.
Huawei, a longtime U.S. dental phone maker, has recently run into similar difficulties.
The company’s ability to manufacture smartphones and also base stations has weakened as the U.S. has prevented Huawei from gaining access to critical chips and manufacturing technologies.
Read more: Fears about the operation of Huawei's phones aroused, the company reassures users - at the same time the US delivered a "lethal blow"
In addition to phones, the U.S. is concerned about Huawei’s role in 5g network construction contracts around the world, fearing the company is spying on information from the Chinese government.
Huawei has assured that the concerns are unfounded.
Chinese technology company ZTE has also been the target of US retaliation.
Recently, the government’s fears have expanded to include Chinese mobile apps such as the popular TikTok.
Read more: Tiktok sues Trump in injunction court