The US government has added China Semiconductor Manufacturing International Corporation (SMIC) to its so-called Entity List. The US Department of Commerce’s Bureau of Industry and Security (BIS) said the action was taken to protect national security, stemming from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and “entities of concern” in the Chinese military industrial complex.
“Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage U.S. technologies to enable indigenous advanced technology levels to support its destabilizing military activities,” Commerce Secretary Wilbur Ross said.
Exporters wishing to work with companies under the Entity List must apply for a special license. BIS says it will now not even consider such licenses for such items “uniquely required to produce semiconductors at advanced technology nodes, such as 10 nanometers or below.” BIS also added over 60 other entities to the list, including drone technology company DJI, for actions it says go against the national security or foreign policy interest of the US. Huawei was put on the list this summer, along with 38 Huawei affiliates.
The FCC recently published a list of equipment from Huawei and ZTE it wants removed in the US. The commssion also started the process to withdraw China Telecom's authorisation to operate in the US. A report by Reuters said US lawmakers will back USD 1.9 billion to fund the removal of the equipment, as part of the USD 900 billion covid-19 relief bill, sources said. Lawmakers will also back USD 3.2 billion for emergency broadband to low-income people, other sources confirmed, as well as USD 7 billion to increase access to broadband. The bill was approved during the weekend but no details have yet emerged about telecom matters.
