After SMIC's involvement in the production of advanced chips for Huawei's Mate 60 Pro smartphone, there have been warnings within the United States about a possible bypass of existing sanctions. In response, the U.S. Department of Commerce sent dozens of letters to SMIC's U.S. suppliers suspending their licenses to export goods to SMIC. This move highlights the broader impact of the U.S. policy shift on the global semiconductor manufacturing chain.
SMIC is a leading chipmaker in China, and its southern factory is regarded as one of the most advanced. However, following the U.S. Department of Commerce's directive, SMIC's U.S.-** merchant Entegris has stopped shipping to it. Entegris confirmed that its export goods are in compliance with a valid export licence and underlined its commitment to complying with the rapidly changing regulatory environment affecting the semiconductor industry. The incident highlights the broader impact of the U.S. policy shift on the global semiconductor manufacturing chain.
Biden has stepped up scrutiny of China's semiconductor industry and imposed new restrictions on SMIC, banning its state-of-the-art factories from importing critical products from the United States. The move is aimed at further curbing China's rise in semiconductors and protecting the U.S. leadership in the field. However, this has also raised concerns about the stability of the global semiconductor chain.
In today's era of globalization and interdependence, the U.S. crackdown on SMIC not only has an impact on China's semiconductor industry, but also has a broader impact on the global semiconductor manufacturing industry and the world's leading chain. As the world's leading semiconductor market, China occupies an important position in the global ** chain and is of great significance to the technological and economic development of other countries.
The U.S. restrictions on SMIC could trigger a chain reaction that could affect the competitive landscape of the global semiconductor market. This can lead to technology blockades and chain disruptions, drive up production costs, and hinder technological innovation and communication. In the context of global economic integration, technological and industrial cooperation between countries is essential to promote economic growth and technological progress. Therefore, all countries should strengthen cooperation and dialogue, jointly address global challenges, and maintain a fair, open and stable environment.
In response to the U.S. crackdown on SMIC, China** and companies need to take a series of measures to address the challenges and opportunities. First of all, China should strengthen independent R&D and innovation to improve its core competitiveness in the semiconductor field. By increasing investment and policy support for the semiconductor industry, we will promote technological innovation and industrial upgrading. Second, China should strengthen cooperation with the international community to jointly maintain a fair, open and stable environment. Promote the establishment of a more just and equitable international economic order by participating in the formulation of international standards and norms and strengthening the protection of intellectual property rights.
In addition, other countries and businesses should also learn from this incident and realize the dangers of technology blockade and protectionism. Countries should strengthen technical exchanges and cooperation to jointly promote the healthy development of the global semiconductor market. Only through cooperation and dialogue can we achieve the goal of mutual benefit and win-win results and promote the prosperity and development of the global economy.
In short, the U.S. crackdown on SMIC and the intensification of scrutiny of China's semiconductor industry are complex and sensitive issues. It is not only related to the economic and trade relations and technological competition between China and the United States, but also to the stability and development of the global semiconductor market. Therefore, all countries should strengthen cooperation and dialogue to jointly address this challenge and maintain a fair, open and stable environment. Only in this way can we achieve prosperity and development of the global economy and benefit the people of all countries.