SMIC, one of the world’s biggest chip makers, is one of the various companies the Department of Defense plans to designate as owned or controlled by the Chinese military, Reuters reports. Earlier this month, President Donald Trump signed an executive order, which went into effect on January 11, that would prohibit US investors from purchasing securities from companies on the defense blacklist.
In an announcement to Reuters, SMIC said it continues to “remain constructive and sincerely committed with the US government” and that it “has no connection with the Chinese military and with military end-users or end-uses.” Do not build for.
The hugest semiconductor factory in China, SMIC holds about 4% of the worldwide foundry market, totals market research firm TrendForce. Its US customers include Qualcomm, Broadcom, and Texas Instruments.
There are nowadays 31 companies on the defense blacklist. SMIC is one of four new companies the Defense Department schedules to add, according to Reuters. The others are China Construction Technology, China International Engineering Consulting Corp, and China National Offshore Oil Corp (CNOOC).
The company was eliminated from the NYSE in May 2019, but it said the judgment was ridden by limited trading volumes and high administrative costs, not by the US-China trade war or the US government to blacklist Huawei and other Chinese tech companies