China Chipmaker Violated U.S. Sanctions

China's top chipmaker, Semiconductor Manufacturing International Corp. (SMIC), "warrants investigation" as it appears to have violated US sanctions by supplying components to Huawei Technologies Co., according to a report by Cagan Koc, Sarah Jacob, and Debby Wu for Bloomberg News.

Huawei uses a 7-nanometer processor manufactured by SMIC to power its latest smartphone, indicating that China is making progress in its efforts to produce cutting-edge semiconductors despite US sanctions. I Photo: York Region

"It certainly appears that it violated sanctions," Rep. Michael McCaul stated during a Wednesday briefing at the US embassy in The Hague. SMIC continues "to attempt to obtain our intellectual property."

Huawei uses a 7-nanometer processor manufactured by SMIC to power its latest smartphone, indicating that China is making progress in its efforts to produce cutting-edge semiconductors despite US sanctions.

Existing rules mandate that any company intending to supply Huawei with US technology must obtain approval from Washington.

It remains unclear whether SMIC has a US license to supply Huawei. McCaul, the Republican chairman of the House Foreign Affairs Committee, has been vocal in his protests against what he considers insufficient enforcement of the Entity List.

The Entity List is enforced by the Commerce Department's Bureau of Industry and Security and specifies license requirements imposed on restricted exports. Neither McCaul nor his committee has much direct influence over sanctions. April Roach and Eric Martin also reported for Bloomberg News.

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