On October 4, SMIC, the largest foundry in mainland China, issued an announcement stating that the Bureau of Industry and Security of the U.S. Department of Commerce issued a letter to some of its suppliers in accordance with the U.S. Export Control Regulations. According to the letter, some US equipment, accessories and raw materials exported by US suppliers to SMIC will be further restricted by US export control regulations. This also means that they must apply for export permits before they can continue to supply SMIC.
In response to this export restriction, SMIC stated that it has already started preliminary exchanges with the US Bureau of Industry and Security and will continue to actively communicate with relevant US government departments.
In addition, the announcement mentioned that SMIC is assessing the impact of the export restrictions on the company's production and operation activities. Due to the prolonged or inaccurate supply period of some equipment, accessories and raw materials exported from the United States, this may have an important adverse effect on the company's future production and operation.
SMIC emphasizes that it will continue to follow up on this matter and will issue further announcements in due course.
According to industry insiders, since SMIC is the largest foundry in mainland China, if production is affected, it may have a significant impact on the supply chain of electronic components.
