By Greg Gao

China’s top foundry SMIC (Semiconductor Manufacturing International Corp), told its investor online interactive platform on July 6 that the company is committed to conducting business in accordance with regulations and has never had Russian customers.

SMIC also said on June 30 that the IC industry is cyclical, and the Chinese domestic semiconductor industry also has shifted from a general shortage to a structural shortage over the past few quarters.

Concerns over the regional segmentation of the supply chain have driven industry transfer, increasing the demand for localized production.

Gina Raimondo, the US secretary of commerce, said in March that Washington could take “devastating” action against Chinese companies that defy US sanctions on Russia for its invasion of Ukraine, according to global press reports.

She specifically referred to SMIC, saying the US could “essentially shut” the company down by denying it access to US chipmaking tools and software if it sold chips to Russia.

She later clarified said it was “probably” a mistake to call out a specific company to showcase a hypothetical enforcement action.“There’s no evidence that SMIC or any particular Chinese company is planning to do an end run around,” she said in an interview, according to international press reports. 

In December 2020, Washington put SMIC on a trade blacklist, restricting US suppliers from doing business with the Chinese chip maker.