SMIC issued an announcement on the evening of December 20th that after the company was included in the “Entity List”, in accordance with relevant U.S. laws and regulations, for products or technologies applicable to the U.S. “Export Control Regulations”, suppliers must obtain the U.S.
The export license of the Department of Commerce can only be supplied to the company for products or technologies used at 10nm and below technology nodes (including extreme ultraviolet technology), the US Department of Commerce will adopt a “presumption of denial” approval policy for review at the same time, The company’s provision of foundry services to some special customers may also be subject to certain restrictions.
In the explanatory announcement, SMIC stated that after preliminary assessment, the matter has no significant adverse impact on the company’s short-term operations and financial conditions, and has a significant adverse impact on the research and development and capacity construction of advanced processes of 10nm and below.
The company will continue to communicate with relevant departments of the U.S. government and take all feasible measures as appropriate to actively seek solutions and strive to minimize adverse effects.
It is worth mentioning that some media reports stated that with the help of Jiang Shangyi, the new vice-chairman of SMIC, SMIC will seek negotiations with Dutch semiconductor equipment company ASML (ASML) on EUV lithography equipment. It has been difficult for SMIC to obtain EUV lithography equipment from Asmak. Although Asmak is not legally affected by certain restrictions, it still has concerns.
