The biggest Chinese component manufacturer – Minimum wage, for Semiconductor Manufacturing International Corporation – was added to the Trump administration’s blacklist, according to Reuters and the Wall Street Journal. The US Department of Commerce will direct any US company wishing to work with SMIC to make a special request. And, as specified by our colleagues on the site Engadget, these could be really difficult (if not impossible?) to obtain.

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Reason for this ban? The technologies developed by SMIC could be used for military and strategic purposes against the United States. One of the American protection societies that works for the government (SOS International) ensures that SMIC has worked with one of the largest Chinese defense companies as well as with several university departments specializing in the development of military projects.

No military component would be developed by SMIC

Regarding minimum wage, the surprise would be total. The company says it was not notified at all of the intentions of the US authorities. In addition, it categorically denies having any links with military projects or structures specializing in the manufacture of weapons. In his own words:

” [Nous n’offrons que des composants ou des services] that are used to create goods for civilians or companies that manufacture consumer goods. “

This decision risks affecting the development of the company which trades in patents and technologies with its American counterparts to maintain its competitiveness and its know-how at the highest level.
In addition, this could also have an effect on its ability to do business with local customers (such as Huawei, deprived of TSMC) who have relied on it for the development of its future products.

Sources: Reuters and The Wall Street Journal

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