Commerce Department cuts China’s largest chipmaker of U.S. technology

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Today’s announcement should come as no surprise to industry watchers. While not as glamorous as Huawei, perhaps the most prominent member of the Entity List, the SMIC has faced its share of scrutiny from the US government in recent months. Ahead of the Commerce Department’s public announcement this morning, he informed members of the U.S. tech industry that he intends to blacklist the chipmaker in letters obtained by the Reuters and the the Wall Street newspaper in September. And last month, the minimum wage was added to a similar blacklist by the Department of Defense aimed at preventing U.S. investors from buying the chipmaker’s securities.

When a company is on the entity list, US companies are prohibited from exporting domestically-made hardware – in this case, presumably software and chip production equipment – without obtaining a license. This time, however, the SMIC is subject to an additional provision: the Commerce Department says that the technology needed to help develop semiconductors using a process of 10nm or less will be “deemed-refusal” entirely at the source. reason that it could be used to support the country. “Military-Civil Fusion Efforts”.

This is particularly bad news for the minimum wage, as the chipmaker has struggled to push its chips past the aging 14nm process – putting its products at a distinct disadvantage compared to denser, more modern chips. in terms of computational performance. (Consider: Apple’s new A14 Bionic chipset and Qualcomm’s Snapdragon 888 are based on a new 5nm process.) Add to that the recent ones. high level management reshuffles within the company, and the near future of the minimum wage seems to be more changing than ever.

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