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U.S. Tightens Restrictions on China’s Top Chipmaker Following Production for Huawei Mate 60 Pro - 98 Views

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U.S. Tightens Restrictions on China’s Top Chipmaker Following Production for Huawei Mate 60 Pro

The Biden administration has increased pressure on China’s prominent sanctioned chipmaker by severing ties between its most advanced factory and American imports.

This decision comes after the factory, Semiconductor Manufacturing International Corp (SMIC), manufactured a sophisticated chip for Huawei’s Mate 60 Pro phone, according to three informed sources.

Towards the end of last year, the Commerce Department issued numerous letters to U.S. suppliers of SMIC, suspending their authorization to sell to the chipmaker’s most advanced plant, known as SMIC South.

While several companies had already halted dealings with SMIC South, the letters from the Commerce Department disrupted shipments of chipmaking materials and parts worth millions of dollars, involving at least one supplier, Entegris.

It is important to note that Reuters found no evidence of Entegris violating any U.S. laws or regulations. In response to the situation, Entegris, whose shares experienced a 1.9% decline on Wednesday, clarified that it had shipped products in adherence to a valid export license.

However, shipments were ceased after receiving letters from the Commerce Department, which suspended authorization to send products to SMIC South. This move signals a continued focus on managing technology transfers and trade relations between the U.S. and China in the context of national security concerns.


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