The Trump administration added 60 Chinese institutions to the Commerce Department’s List of Entities on Friday.
This measure prohibits American companies from exporting technology developed in the United States without a license.
One of the big names on the list is drone maker DJI, but there’s another big name: Semiconductor Manufacturing International Corporation, or SMIC.
SMIC is China’s largest chipmaker, so the repercussions could be far-reaching.
Getting on the list prevents the company from acquiring the technology needed to build chips with newer process nodes, such as the 5nm ones already used by TSMC and Samsung.
” We will not allow advanced US technology to help build the army of an increasingly belligerent adversary,” said Commerce Secretary Wilbur Ross.
The SMIC ban is even worse news for Huawei. Until now, SMIC was the only chipmaker that was safe from US restrictions that prevented other chipmakers from supplying chips to Huawei.
In fact, SMIC supplied Huawei with the 14nm HiSilicon Kirin 710A chipset earlier this year. But now that SMIC has also been blacklisted, they may not be able to upgrade their foundries as they do not have access to components and technologies developed in the United States.
The Commerce Department says that any technology needed to help the company achieve a process of 10nm or less is subject to a “presumption of denial.”