IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

US seeks to ban shipments of chipmaking tools to ‌China’s SMIC

The potential export ban will stall China's efforts to make more advanced chips

The Biden administration is contemplating new restrictions on shipments of chipmaking tools to China.

The move is particularly directed at SMIC, China's largest chipmaker and supplier of Huawei devices. As matters stand, the US Commerce Department is leaning toward a potential ban on exports of tools to Chinese semiconductor factories producing advanced chips with 14nm nodes, or smaller.

Related Resource

The field guide to application modernisation

Moving forward with your enterprise application portfolio

Whitepaper cover with title in a blue square block over an image of a man walking in the highlandsFree Download

The agency, however, also implied looking at the continued supply of tools to plants making less advanced semiconductors owned by the same Chinese firms.

The comes amid the global chip shortage, which shows no signs of ending this year.

The targeted restrictions will work to ensure a steady supply of commodity chips for automobiles and everyday consumer electronics, as industries continue to recover from the global chip shortage, according to the Department.

The US’ limitations on exports to China also help ensure its technology supremacy.

Commenting on the potential ban, Liu Pengyu, a spokesman for the Chinese Embassy in Washington, said, "By repeatedly seeking to politicize, weaponize and ideologize economic and trade issues and exercise technological blockade and decoupling against other countries, the US would only remind other countries of the risks of technological dependence on the US and prompt them to quickly become independent and self-reliant in science and technology." 

SMIC was previously blacklisted by the Trump administration in 2020 after reports of alleged military ties surfaced. Even so, the export ban only applied to a small portion of chipmaking equipment destined for the firm.

“If the Commerce Department plows ahead with the concept, which has not yet been drafted into a formal proposal, the United States would seek to bring on board allied countries that boast top chipmaking equipment producers like the Netherlands, Japan and South Korea,” sources reported to Reuters.

Featured Resources

The state of Salesforce: Future of business

Three articles that look forward into the changing state of Salesforce and the future of business

Free Download

The mighty struggle to migrate SAP to the cloud may be over

A simplified and unified approach to delivering Enterprise Transformation in the cloud

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

The Total Economic Impact™ Of IBM FlashSystem

Cost savings and business benefits enabled by FlashSystem

Free Download

Recommended

FedEx to invest in more robotic automation from Berkshire Grey
Business strategy

FedEx to invest in more robotic automation from Berkshire Grey

4 Aug 2022
Romanian man extradited to US over Gozi virus hacking charges
malware

Romanian man extradited to US over Gozi virus hacking charges

20 Jul 2022
Ericsson gets green light for $6.2 billion Vonage buyout
mergers and acquisitions

Ericsson gets green light for $6.2 billion Vonage buyout

15 Jul 2022
Microsoft bifurcates channel chief role following partner backlash
channel

Microsoft bifurcates channel chief role following partner backlash

15 Jul 2022

Most Popular

How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

29 Jul 2022
Cyber attack on software supplier causes "major outage" across the NHS
cyber attacks

Cyber attack on software supplier causes "major outage" across the NHS

8 Aug 2022
Should you take your password manager off the internet?
Sponsored

Should you take your password manager off the internet?

28 Jul 2022