The United States: "Expecting" SMIC to Sanction Russia

Latest update time：2022-03-04 15:27

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According to Bloomberg, a US official said that any company that uses US products and technologies is subject to the ban on Russia, including Chinese semiconductor and electronics companies. "Expect" SMIC and others to join the sanctions against Russia.

Source: Bloomberg

The report said Washington will rely on Chinese companies to join the US-led sanctions against Russia, aimed at weakening the latter's ability to purchase key technologies and components. In addition, three Chinese companies - SMIC, Lenovo Group and Xiaomi - were specifically named.

The report cited a report from the Peterson Institute for International Economics, saying that 70% of Russia's supply of chips, computers and smartphones came from China in 2020. At the same time, Russian customs data in 2021 showed that China was still Russia's largest source of chip imports, accounting for 32.8% of its annual semiconductor imports.

Source: Bloomberg

Any products produced using certain U.S. inputs, including U.S. software and designs, are subject to the ban, even if they are made overseas, a U.S. official said. Companies that try to circumvent these new controls face the prospect of cutting themselves off from U.S.-origin technology, and corporate executives could go to jail for violations.

The report explained that its basis was that SMIC continued to use chip manufacturing equipment from US suppliers, including Applied Materials, after being blacklisted by the United States in 2020. If the company fails to comply with US sanctions, it may face stricter restrictions that may make it more difficult or impossible to obtain licenses for repair parts and new equipment.

In addition, electronic product terminal suppliers such as Lenovo and Xiaomi use chips from Intel, AMD, Qualcomm, Qorvo and other companies, which means that their products carry American technology and software. As members of the SIA (Semiconductor Industry Association), these American companies have all joined the sanctions against Russia without exception.

It can be seen that the routine is still the routine operation of "long-arm jurisdiction", but the threat and kidnapping are very obvious, not to mention that these Chinese companies are major customers of the US semiconductor industry. At the same time, Apple's consumer electronics products such as iPhone and PC have not been affected in Russia.

On February 28, Foreign Ministry spokesperson Wang Wenbin responded to a reporter's question about the West's exclusion of Russia from SWIFT by saying: "China does not agree to resort to sanctions to solve problems, and is even more opposed to illegal unilateral sanctions without international authorization."

Source: Chip Master

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