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HomeBusinessChina’s largest chipmaker too set out to be blacklisted by the US?

China’s largest chipmaker too set out to be blacklisted by the US?

The Trump administration based in the United States has gone on to start the US-China trade war as the president of the United States has been adding sanctions on the Chinese companies. And now, as per a recent report, the US is planning on to ban China’s largest semiconductor manufacturer in SMIC.

SMIC too goes on to rely upon American chipmaking equipment. If indeed the company gets added to the Entity list, it would make matters very difficult for it because of its need to obtain the components set out by manufacturers based in the US.

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The ban on SMIC would also hurt Huawei as the Chinese smartphone giant just cannot seem to catch a break. Indeed this ban could hurt Huawei due to the fact that SMIC happens to be manufacturing budget HiSilicon Kirin chipsets. As of now, SMIC happens to be the only option left for Huawei given that the company has been banned from using chipsets or indeed its related technology by any American company.

Must Read : Huawei to release the Kirin 9000 and Kirin 9000E Processors?

In any case though, the worry is obviously there for both Huawei as well as SMIC. SMIC is a company based in Shanghai and was founded 20 years ago back in 2000. It recently managed to raise around $7.8 billion in a secondary listing on the Stock Market two months ago in July – making it the biggest public offering in China for a decade. Indeed it was for this that the company withdrew its listing from the New York Stock Exchange.

While SMIC does indeed rank amongst the top five semiconductor manufacturers around the globe, it happens to be very far behind its competitors when taking into consideration the level of technology. Indeed while the likes of Samsung and TSMC have started the process for manufacturing 5nm chipsets, SMIC still happens to be using the 14nm process for manufacturing smartphone chipsets.

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