Chipmaker SMIC denies it has links with military
China’s leading maker of semiconductors has denied it has any links to the military following reports that Washington was considering stepping up its pressure on Chinese technology companies by imposing export controls that could disrupt manufacturing for a national industrial champion.
“We have no relationship with the Chinese military,” the company said in a statement. It said SMIC products are “solely for civilian and commercial end-users and end-uses.”
The company in a statement on Saturday said it was “in complete shock” over the news but was “open to sincere and transparent communication” with Washington to resolve “potential misunderstandings.”
SMIC said it previously was granted “validated end-user status” by the agency that would impose the export controls. Such status allows a Chinese company to export US technology without applying for a license for each shipment.
SMIC is the largest chip manufacturer on China’s mainland but is second-tier to Taiwan Semiconductor Manufacturing Co Ltd, the industry’s market leader. It has sought to build out foundries for the manufacture of computer chips that can compete with TSMC.
Chinese companies including Huawei are developing their own processor chips and other technology.