Export Restrictions on SMIC Will Have ‘Manageable’ Impact, Chairman Says
Semiconductor Manufacturing International Corporation (SMIC) has “deep regret” about the Trump administration’s imposition of national security export restrictions on China’s largest chipmaker (see 2009280022), Chairman Zhou Zixue said on a Q3 investor call Nov. 11. Though the restrictions “will have an impact on SMIC in the near term, we believe it’s manageable,” he said. “We will continue to follow up on this matter and further evaluate the impact. The company will maintain close cooperation with suppliers and customers and continue to maintain active communication with the relevant department of the United States government working to resolve possible differences.”
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
SMIC supplies products and services only for “civilian end-users, and has no military end users,” Co-CEO Zhao Haijun said. “As an international foundry, SMIC strictly complies with the laws and regulations of all jurisdictions where we conduct business. Over the years, we have established good cooperative relations with well-known customers and semiconductor equipment suppliers in the United States and internationally.” After the restrictions were imposed, “we immediately issued announcements, sorted through the information with our suppliers and informed customers of possible risks,” he said. SMIC’s working with U.S. suppliers to apply for export licenses, he said. It runs the risk of longer delivery lead times for equipment and raw materials due to the restrictions, he said.