14 DAY TRIAL // Another big name could end up being banned in the United States as the Trump administration is reportedly looking at updating the Commerce Department’s entity list with more Chinese firms.
Semiconductor Manufacturing International Corporation, or SMIC, could soon have to struggle with the same sanctions as Huawei and ZTE in the United States, as Trump wants to ban American companies from doing business with it.
While a decision in this regard hasn’t been made just yet, a report from Reuters cites a Pentagon official as confirming that potential sanctions against SMIC are indeed on the tablet, but no specifics regarding the reasons for this ban have been shared.
Most likely, the reasons are the same as in the case of Huawei and ZTE: a possible collaboration with the Beijing government that would put the privacy of other users at risk.
“Shocked and perplexed”
In a statement released recently, SMIC emphasizes that it’s one of the largest chipmakers today, and claims that it’s working with the Chinese military or local authorities have left the company “shocked and perplexed.
“The Company manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses. We have no relationship with the Chinese military. In and before 2016, SMIC had been granted Validated End-User (VEU) authorization by the BIS and the company hosted several visits from U.S. Government officials,” SMIC said.
“Any assumptions of the Company's ties with the Chinese military are untrue statements and false accusations. The Company is in complete shock and perplexity to the news. Nevertheless, SMIC is open to sincere and transparent communication with the U.S. Government agencies in hope of resolving potential misunderstandings.”
No information is available right now as to when the new sanctions against the chipmaker could be officially announced by the Trump administration.