BUSINESS China's SMIC applies to renew US license to supply Huawei

BUSINESS

China's SMIC applies to renew US license to supply Huawei

CGTN

22:19, September 15, 2020

smic.jpegAn employee works at a lab of SMIC. (File photo: IC)

China's Semiconductor Manufacturing International has asked for approval from the United States to continue supplying Huawei Technologies Co Ltd, said the company on Tuesday.

September 15 is the time for the restrictions imposed by Washington in May on Huawei go into effect, where major semiconductor equipment vendors are barred to supply chips or provide service to Huawei.

Companies hoping to continue doing business with Huawei must now first receive a license from the U.S. government.

"SMIC is committed to compliance with all applicable U.S. export regulations and the intentions of the relevant governmental agencies.  To that end, we have submitted to BIS export license applications covering several Huawei products," a spokesperson told CGTN.

Taiwan Semiconductor Manufacturing Co Ltd, the most important manufacturer for Huawei's high-end mobile phone chipsets, said in July it would cease supplying Huawei come the deadline.

Micron Technology Inc, a maker of DRAM memory chips, also said it will no longer supply Huawei. Taiwanese chip designer MediaTek said last month it had applied for U.S. permission to continue supplying Huawei.

Huawei is a major customer for SMIC and generates 20 percent of the foundry’s revenue, according to an analysis from Bernstein research.

The foundry is incapable of producing the most advanced chips in Huawei's Kirin mobile chipsets, however, and still relies on equipment from U.S. companies who may also cease servicing Huawei as the restrictions take effect.

SMIC itself has fallen under scrutiny from Washington. Earlier this month media reported that the Trump administration is considering placing restrictions on the company similar to those it placed on Huawei, barring U.S. companies from servicing and supplying it.

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