US restrictions could hamper China’s plans for a self-reliant semiconductor sector

US restrictions could hamper China’s plans for a self-reliant semiconductor sector

  • Export curbs on SMIC could deal a heavy blow to China’s pursuit of an independent semiconductor sector
  • Restrictions may also slow company’s development of advanced processing nodes

The latest US restrictions on Chinese firm Semiconductor Manufacturing International Corporation (SMIC) could deal a heavy blow to China’s push for a robust home-grown semiconductor industry, analysts say.The US government moved to impose the restrictions following a review that concluded the Shanghai-based company’s chips might be used by the Chinese military. The US commerce department told SMIC’s American suppliers on Friday to apply for a licence to sell technologies to SMIC.

“The inclusion of SMIC into a US trade blacklist would deal a heavy blow to China’s plans to develop its domestic semiconductor industry,” said Arisa Liu, an industry analyst at the Taiwan Institute of Economic Research.