Washington has imposed similar curbs on access to USA process chips and other components for China's first global tech competitor, Huawei Technologies Ltd., one of the biggest makers of smartphones and network equipment. Export controls on SMIC will affect United States companies selling chip manufacturing technology to Chinese manufacturers.
Residents wearing mask to protect themselves from contracting the coronavirus pass by a Chinese military propaganda display in Beijing on Wednesday, Aug. 26, 2020. In a statement released on Saturday, SMIC said: "Any assumptions of the company's ties with the Chinese military are untrue statements and false accusations".
SMIC said it previously was granted "validated end-user status" by the agency that would impose the export controls.
A Defense Department spokesperson said, "DoD is now working with the interagency in assessing available information to determine if SMIC's actions warrant adding them to the Department of Commerce's Entity List". The Company manufactures semiconductors and provides services exclusively for civilian and commercial end-users and end-uses.More news: Alexander Zverev advances to fourth round amid freakish match delay
As tensions between the United States and China escalate, USA officials are urging other governments around the world to impose sanctions on Hawaii, arguing that the agency will provide spying data to the Chinese government.
SMIC is China's top semiconductor fab, and the closest domestic counterpart to Taiwan Semiconductor Manufacturing, the world's most advanced maker of chips.
The Trump administration has often used the entity list, which now includes more than 275 China-based firms, to hit key Chinese industries, from telecoms equipment giants Huawei Technologies and ZTE to surveillance camera maker Hikvision. Those regulations require it and other chip suppliers to Huawei to seek US licenses before producing chips for the telecoms giant if they rely on American chipmaking technology.
SMIC is a publicly-held company and has collaborated extensively with firms on the blacklist, including Huawei.More news: Gulf Livestock 1: Japan finds second survivor from capsized ship
SMIC is China's largest semiconductor foundry, supplying microchips to American tech companies such as Qualcomm, Broadcom and Texas Instruments.
The Trump administration in the United States has started a US-China trade war and has been adding sanctions on Huawei.
Reuters reports that there are now more than 275 Chinese-based companies on the US list of companies that could be added to the SMIC blockchain first.More news: Daniel Prude: NY Attorney General to set up grand jury