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Semiconductor Manufacturing International Corporation (SMIC)

Semiconductor Manufacturing International Corporation (SMIC)

US lawmakers urge freeze on all tech exports to Huawei and SMIC after chip found in new smartphone

Comments from influential Republican Congressman Mike Gallagher come after Huawei unveiled advanced technology-equipped Mate 60 Pro- Phone has filed chip

US suppliers received multi-billion dollar licenses to sell Huawei and SMIC technologies despite trade restrictions

expected to halt technology exports to Huawei Technologies and a major Chinese semiconductor maker after new chips were discovered in Huawei phones, that could violate trade restrictions, a House spokesman said. The China Committee said on Wednesday. The comments from Congressman Mike Gallagher, an influential Republican lawmaker whose special committee urged the Biden administration to take a tougher stance on shipping US tech to China, came after Chinese electronics giant Huawei started selling a phone called the Mate 60 pro had started. The phone contains a The chip is the result of a technological breakthrough by Semiconductor International Manufacturing Corp (SMIC), according to analysts. “This chip probably could not have been made without US technology, and as such SMIC may have violated Department of Commerce regulations on foreign direct products,” Gallagher said in a statement. “It is time to end all exports of US technology to Huawei and SMIC and make it clear that any company that violates US law and harms our national security will be cut off from our technology. ”

SMIC Headquarters in Shanghai, China. Photo: Bloomberg

In May 2019, Huawei was blacklisted for national security reasons and required its US and other suppliers to obtain a special license to ship goods. The minimum wage was included in the so-called entity list system in December 2020 to prevent cutting-edge technology from being passed on to military users.

Trade restrictions on Huawei and SMIC include the Foreign Direct Products Rule, which aims to ban any company in the world from using US tooling to make chips for Huawei.

However, suppliers Huawei and SMIC have received multibillion-dollar licenses to sell US technology to these companies, despite being on trading lists, Reuters previously reported. About 90% of the licenses were sold at minimum wage.
The US Commerce Department’s office that oversees export controls did not immediately respond to a request for comment