Industry group drafts letter against possible SMIC blacklisting

The blacklisting of SMIC, the biggest chipmaker on the Chinese mainland, will “jeopardize” the United States’ tech industry, a global industry association said, according to media reports.

Semiconductor Equipment and Materials International (SEMI) has drafted a letter to US Commerce Department Secretary Wilbur Ross. In the letter, the association suggested that blacklisting SMIC would jeopardize the United States’ technological edge by making it harder for US companies to supply SMIC, which accounts for as much as US$5 billion in annual US-origin equipment and material sales, according to Reuters. 

"We urge the Department to carefully consider the immediate and long-term detrimental impacts to US industry, economic and national security that may result from the addition of SMIC to the Entity List," said SEMI in the letter quoted by media reports. 

SEMI, with headquarters in the US, is an association with 2,400 enterprise members including US-based Lam Research and Applied Materials. It connects 1.3 million professionals in the industry, according to its website.

SMIC is the latest Chinese high-tech firm involved in US tech export controls aimed at China.

US-based Lam and Applied Materials are major suppliers to SMIC of semiconductor manufacturing equipment and materials.

Facing the possibility of a US blacklisting, shares of Shanghai-listed SMIC closed at 57.69 yuan (US$8.55) on Friday, down nearly 40 percent from a peak of 95 yuan when the company debuted on the STAR Market in July.

Also earlier this week, SMIC asked for approval from the US to continue supplying semiconductors to Huawei, “in accordance with regulations and relevant laws in all countries and regions,” the company said.