The Impact of US Restrictions on Chinese Chipmaker SMIC

Written by Eashan Trehan

The United States has recently imposed restrictions on Chinese firm SMIC and although the chipmaker was not outrightly put onto a blacklist, the new restrictions could very well have far reaching implications.

SMIC is essential to China’s prospects of developing the country’s own advanced semiconductor technology, which in turn is at the heart of other technological advances in the hardware and software space. In spite of being its nation’s largest chipmaker, SMIC is thought to be several years behind its Taiwanese counterpart TSMC in terms of technological advancements. The move could force Chinese technology players into sourcing all of their needs locally, cutting their access to more advanced technology being sold by foreign corporations.

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