Proposed US curbs on Chinese chipmaker SMIC could rattle supply chains

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SHANGHAI: Proposed U.S. export curbs on SMIC threaten to derail China's nascent but growing domestic semiconductor supply chain, and also hit ...

SHANGHAI: Proposed U.S. export curbs on SMIC threaten to derail China's nascent but growing domestic semiconductor supply chain, and also hit American and Japanese companies who count the Chinese chipmaker as an important customer.

But analysts said the proposed restrictions would prevent American suppliers, such as Applied Materials, Lam Research Co and KLA Corp, from selling manufacturing machinery to SMIC and thereby prevent it from making advanced chips. "If SMIC can't get access to U.S. technology, China will face an even harder, and maybe an impossible, climb to the cutting edge in semiconductors," Kevin Allison, director of research firm Eurasia Group, wrote in a note.

Aside from denting their current sales and service business, they could rob them of the opportunities presented by SMIC's expansion plans.

 

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