Chipmaker Semiconductor Manufacturing International Corp (SMIC) accused US authorities of a fundamental lack of understanding about its business after it was added to a list of companies carrying restrictions due to claimed links to the Chinese military.
As speculated earlier this week, SMIC was yesterday (3 December) added to the US’ so-called Communist Chinese Military Companies list, which imposes a number of restrictions primarily around preventing US investors trading in its stock.
In a statement to the Hong Kong stock exchange, SMIC brushed off the impact on the business, while rubbishing accusations its products were in any way involved in military applications.
“The company reiterates that it is an international enterprise operating independently with stakeholders such as investors and customers all over the world,” it stated, adding the decision “reflects a fundamental misunderstanding by the United States Department of Defence regarding the end-uses of the company’s business and technology”.
SMIC added it would continue “proactive communication” with US authorities over the issue.
This is not the first time the chipmaker found itself on the wrong side of US authorities.
It was hit with trade restrictions earlier this year which forced suppliers in the country to secure an export licence to continue exporting certain equipment to SMIC.Subscribe to our daily newsletter Back