U.S. considers cutting trade with China’s biggest semiconductor manufacturer

U.S. considers cutting trade with China’s biggest semiconductor manufacturer

The Trump administration is considering adding China’s largest semiconductor manufacturer to a trade blacklist, in another sign of heightening U.S.-China technology tensions.

The Defense Department said it is working with other agencies to determine whether the “actions” of Semiconductor Manufacturing International Corp., or SMIC, warrant adding the company to the government’s Entity List, which would block U.S. companies from selling SMIC technology without a license.

“Such an action would ensure that all exports to SMIC would undergo a more comprehensive review,” Pentagon spokeswoman Sue Gough said by email Saturday, confirming an earlier report by Reuters.

Gough declined to comment on the reasons for the review. The Pentagon in the past has warned that China’s efforts to develop corporate strength in technologies including semiconductors would be likely to benefit the People’s Liberation Army.