The Biden administration has intensified its scrutiny of China’s top sanctioned chipmaker, Semiconductor Manufacturing International Corp (SMIC), by cutting off its most advanced factory from further American imports. This move comes after the factory produced a sophisticated chip for Huawei’s Mate 60 Pro phone, according to sources familiar with the matter.
Last year, the Commerce Department sent numerous letters to U.S. suppliers to SMIC, suspending permission to sell to its most advanced plant, known as SMIC South. While several companies had already halted sales to SMIC South, the letters stopped millions of dollars worth of shipments of chipmaking materials and parts from at least one supplier, Entegris.
Entegris, a Massachusetts-based company, stated that it complied with a valid export license for its shipments to SMIC South and ceased them after receiving letters from the Commerce Department suspending permission to send products to the facility.
The Biden administration’s actions against SMIC indicate a growing effort to restrict U.S. technology access for the company, following similar moves against Huawei. SMIC’s ability to produce advanced semiconductors has raised concerns in Washington, especially after the launch of Huawei’s Mate 60 Pro, which highlighted China’s technological advancements despite U.S. restrictions.
Critics argue that the recent actions against SMIC do not go far enough, with some accusing the Commerce Department of negligence for not acting sooner. Nonetheless, the Biden administration’s efforts reflect a broader strategy to limit Chinese access to advanced U.S. technology, especially in the semiconductor industry.
SMIC South’s reliance on U.S. suppliers suggests that a sudden interruption in its supply chain could impact production for several months, potentially affecting its ability to produce chips for devices like the Mate 60 Pro. While SMIC may seek alternative suppliers, finding and testing new sources could take time, causing significant disruptions to its operations.
Overall, the Biden administration’s actions signal a more aggressive stance towards restricting Chinese access to advanced U.S. technology, particularly in critical sectors like semiconductors.
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