Washington announced Friday that it will require US exporters to apply for a license before they can sell to Semiconductor Manufacturing International Corporation (SMIC). The US government claims that the chipmaker can use its tech to help China modernize its armed forces. SMIC (SIUIF) says it has no relationship with the Chinese military.
But in a statement on Sunday, the company acknowledged that while the restrictions are unlikely to hurt its short-term operations, its loftier goals are in doubt. The new US rules will have “a material adverse effect” on its ability to develop highly advanced chips, it said.
That’s because Washington has said that any request to export tech needed to produce super advanced chips “will be subject to a presumption of denial” — a major problem for SMIC, which uses American-made software and equipment to create its chips.
I guess we’ll see whether or not Joe Biden is the kind of politician who stays bought.