🟩 Semiconductor companies added to the entitiy list

New Chinese semiconductor company added to U.S. "Entity List"
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🟩 Chinese semiconductor companies added to the embargoed list

The U.S. Department of Commerce has added five Chinese semiconductor companies to its “Entity List,” which includes companies with security issues. Secretary of Commerce Remondo announced that he would “effectively use export controls to protect the security of the United States.”

Chinese semiconductor companies
added to ELHangzhou Zhongke MicroelectronicsHunan Goke MicroelectronicsNew

H3C Semiconductor TechnologiesXi’an
Aerospace Huaxun TechnologySuzhouYunchip
Microelectronics

What is an entity list?

An Entity List (EL) is a list of specific companies or persons published by the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. If you want to export goods, software, production, development, etc. to the listed companies or persons, permission from the Ministry of Commerce is required, and the application will be rejected in principle. In other words, the entity list is effectively an “embargo list”.

🟩 Companies concerned about links to the People’s Liberation Army

The reason for being added to the entity list is that the companies on the list are collaborating in the military modernization of the PLA. The United States is wary of China’s military-civil fusion strategy, which unites corporations and the People’s Liberation Army. IT HAS IMPOSED SANCTIONS ON CHINESE TECH COMPANIES SUCH AS HUAWEI AND ZTE TO STOP THE PLAZA ARMY’S IMPROVED CAPABILITIES.

🟩Summary

Concerns about supporting the People’s Liberation Army led to the addition of Chinese semiconductor companies to the U.S. embargo list

Since SMIC, China’s largest semiconductor foundry, was added to the embargoed list, the pressure on Chinese semiconductor companies has intensified.

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