The United States’ move to cut off exports to China’s top chipmaker will impede the company’s manufacturing capabilities, while pushing Beijing to further prop up its domestic semiconductor industry. On Dec. 18, the U.S. Commerce Department announced it was adding over 60 companies, including China’s Semiconductor Manufacturing International Corporation (SMIC), to its entity list, which will effectively bar these companies from accessing U.S. technology by increasing export controls. U.S. companies will now need a special license from the Commerce Department before exporting any products, services or technology to SMIC and the other newly blacklisted companies. Requests for such licenses will be subject to the presumption of denial. The jurisdiction of such controls also covers exports by other countries that use U.S. components and technology. ...
