Trump Administration Could Blacklist Chipmaker SMIC

The Trump Administration may soon add Chinese chipmaker SMIC to the trade blacklist.

In fact, according to Reuters, “the Defense Department was working with other agencies to determine whether to make the move against Semiconductor Manufacturing International Corporation, which would force U.S. suppliers to seek a difficult-to-obtain license before shipping to the company.”

While SMIC said it was shocked by the news, it added it was open to communication with the U.S. to resolve any issues.  If SMIC is added to the blacklist, it could impact U.S. companies such as Lam Research, KLA Corp., and Applied Materials.

In addition, while the U.S. did not detail reasons for the potential action, SMIC’s relationship to the Chinese military is under scrutiny, added Reuters.