And the US-China technology war is holding up well. The US now bans US companies from supplying SMIC with materials.
The Financial Times reports that the US was imposing export restrictions on SMIC (Semiconductor Manufacturing International Corp), the largest partreatmentof China's chips, which means US companies will need permission to export materials to it.
In accordance with Ministry US Trade, there is an "unacceptable risk" that SMIC's products could be used for military purposes. SMIC for its part has refused to make components specifically for military use and denies any connection with the Chinese armed forces.
About 50% of SMIC's equipment comes from the United States, and disrupting its supply chain can affect its production of CMOS sensors, fingerprint sensor ICs, and power management ICs.
The new ban is not as strict as the one imposed on Huawei. However, the US may also take further measures. MrfaceChina's Foreign Ministry spokesman Zhao Lijian accused the US of "blatant intimidation".
The ultimate goal of the US strategy is unclear, as moving Chinese industry away from US sources will ultimately hurt US companies, upset the US trade balance with China and reduce US influence in China, with no clear gain. .
What Trump's ultimate goal is perhaps it will take some time to see. Maybe we will see him only from the end result. In the market, however, the practice of the USA against Chinese companies has begun and can be seen, as several companies constructionof electronic products, such as Dahua, Huawei cameras are unable to make immediate deliveries, due to shortages of raw materials.
