The U.S. Bureau of Industry and Security (BIS) has sent letters to some of Semiconductor Manufacturing International Corp.’s (SMIC) suppliers telling them that exports to China’s largest computer chipmaker are subject to additional export restrictions, SMIC said Sunday.
The Shanghai-based company said it is evaluating the impact of the curbs and warned of adverse effects on its production amid supply uncertainties.
“The U.S. previously saw SMIC as a civilian enterprise but now deemed it as a military business,” an electronics industry analyst in China said. SMIC has denied it has links to China’s military.
It is thought that the sanctions may adversely impact the company’s efforts to catch up with the technological capabilities of the world’s most advanced chipmakers.
However, the curbs’ impact on SMIC’s revenue for now is likely to be marginal as advanced chips still account for less than 10% of its sales, according to its second-quarter financial report.
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