U.S. still undecided on further restricting China's SMIC -sources

U.S. still undecided on further restricting China's SMIC - sources
U.S. still undecided on further restricting China's SMIC - sources   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Karen Freifeld</p> <p><span class="caps">WASHINGTON</span> -The Biden administration still has not decided whether to block more sales of U.S. technology to Chinese chipmaker <span class="caps">SMIC</span>, but raised the possibility of discussing with allies further restrictions on selling chip-making equipment to China, sources familiar with a Thursday meeting on the topic said.</p> <p>Officials at the meeting of deputies from various U.S. agencies talked about a proposal to toughen sales to <span class="caps">SMIC</span> and other chipmakers in China, the sources said. The officials appeared to agree that the U.S. should work with friendly countries on a more restrictive policy, one source said.</p> <p>A spokesperson for the White House declined to comment.</p> <p>The Trump administration placed Semiconductor Manufacturing International Corp (<span class="caps">SMIC</span>) on the U.S. Department of Commerce’s trade blacklist late last year over concerns of <span class="caps">SMIC</span>’s aiding China’s military.</p> <p>The listing, which requires U.S. suppliers to obtain a license before shipping chipmaking equipment and other goods, allows most sales to be decided on a case-by-case basis. However, equipment that can be used to make only the most advanced, 10-nanometer and smaller chips is held to a higher standard and is likely to be denied.</p> <p>The policy change being considered would restrict sales of items that could also be used for less advanced chips.</p> <p>However, chip equipment makers argue that if <span class="caps">SMIC</span> is not supplied by U.S. equipment makers, the company will buy from other countries.</p> <p>Reuters has reported that export license requests for <span class="caps">SMIC</span> were already slow to get approval. </p> </div>