Leading China chipmaker SMIC has hit US export limits

Semiconductor Manufacturing International Corporation (SMIC), China’s largest chip company, has confirmed that some of its suppliers are restricted by U.S. export control regulations and that its business will be affected by uncertainties in U.S. equipment supplies.

The U.S. Bureau of Industry and Security (BIS) told some of SMIC’s suppliers to further limit U.S. equipment, tools and equipment exports to the company, SMIC said in a statement Sunday night. Exports require permission.

U.S. in relation to export restrictions. SMIC said in a statement that the company had undertaken a “fundamental exchange” with the Bureau of Industry and Security. The company maintains estimates on the relative impact of such export restrictions on production and operation activities. SMIC says it operates in accordance with the relevant laws and regulations within all jurisdictions that operate its businesses.

According to media reports, the Bureau of Industry and Security under the U.S. Department of Commerce has issued letters informing some companies that they no longer need to be licensed before supplying goods and services to SMIC. The letter noted that “diversion of exports to SMIC to China for military end use is an unacceptable risk”.