Rep. Gallagher: US Must Move against Chinese Chipmaker SMIC
House Republican Calls for Banning US Investment in SMIC
Republican Rep. Mike Gallagher (WI) has called on the US government to take action against Chinese chipmaker SMIC, warning that the company poses a threat to US national security. “SMIC is a direct threat to the United States,” Gallagher said in a statement. “The company is funded by the Chinese government and has close ties to the Chinese military. It is using its access to US technology to develop advanced chips that could be used in military applications.” Gallagher is urging the US government to ban US investment in SMIC and to impose sanctions on the company. He also wants the US to work with its allies to develop a strategy to counter SMIC’s threat.What is SMIC?
SMIC is China’s largest semiconductor manufacturer. The company was founded in 2000 and is headquartered in Shanghai. SMIC produces a wide range of chips, including logic chips, memory chips, and analog chips. SMIC has been a major beneficiary of the Chinese government’s efforts to develop a domestic semiconductor industry. The company has received billions of dollars in government subsidies and has been given preferential access to land and other resources.SMIC’s Ties to the Chinese Government and Military
SMIC has close ties to the Chinese government and military. The company’s largest shareholder is the Chinese government-owned investment fund, Citic Group. SMIC also has a number of joint ventures with Chinese military-linked companies. SMIC has used its access to US technology to develop advanced chips that could be used in military applications. In 2020, SMIC was accused of supplying chips to Huawei, a Chinese telecommunications company that has been blacklisted by the US government.The Threat to US National Security
SMIC’s ties to the Chinese government and military pose a threat to US national security. The company could use its access to US technology to develop chips that could be used in weapons systems or other military applications. SMIC could also use its position as a major supplier of chips to give the Chinese government leverage over US companies and the US government. The Chinese government could use this leverage to pressure the US on a variety of issues, including trade, technology, and military matters.The US government is aware of the threat posed by SMIC. In 2020, the US Department of Commerce added SMIC to its Entity List, which restricts US companies from doing business with the company. However, the Biden administration has not yet taken any further action against SMIC.