And the US tech war China it holds up well. The US now bans US companies from supplying materials to SMIC.
The Financial Times reports that the US was imposing export restrictions on SMIC (Semiconductor Manufacturing International Corp), the largest company of China's chip production, which means US companies will need permission to export materials to it.
According to the US Department of Commerce, there is an "unacceptable risk" that SMIC products could be used for military purposes. SMIC, for its part, has refused to make parts specifically for military use and denies any connection to the Chinese armed forces.
About 50% of SMIC's equipment comes from the USA and the vacation of their supply chain may 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. Chinese Foreign Ministry spokesman Zhao Lijian accused the US of "blatant intimidation".
The ultimate goal of the US strategy is unclear, as the removal of Chinese industry from US sources will ultimately hurt US companies, harm the commercial balance of the US with China and will reduce US influence in China, with no clear gain.
It may take some time to see what Trump ultimately intends to do. Maybe we only see him from the end result. However, the US practice against Chinese companies has begun to appear in the market, as several electronics companies, such as Dahua and Huawei cameras, are unable to make direct deliveries due to shortages of raw materials.
