Global RiskNews Briefs

U.S. Blacklists China’s Top Chip Maker, Escalating Tech Fight

The Trump administration has blacklisted China’s largest computing chip manufacturer, Semiconductor Manufacturing International Corporation (SIMC). The move will restrict the company’s access to high-est technology and is a result of its close ties to the Chinese military. SIMC, alongside 60 other Chinese institutions, will be added to a blacklist, according to the Commerce Department. The designation restricts companies from exporting US-made tech without a license.

This means that the SIMC will not be able to effectively acquire the products needed to build chips with 10-nanometer circuits or smaller. These types of chips are considered to be within the industry’s top class of chips and are the most sought after, as well as a major source of revenue for SIMC. The move not only raises pressure significantly on the chipmaker, but it deepens tensions between the US and China.

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