Why Trump’s Eyes Are Now On The Chinese Chip

Why Trump’s Eyes Are Now On The Chinese Chip
Photo by Slejven Djurakovic on Unsplash

The Trump administration is considering blacklisting Chinese chip maker Semiconductor Manufacturing International Corporation (SMIC). An official with the country’s defense ministry said the Chinese chip maker could be involved in a US trade embargo.

The United States is stepping up its crackdown on Chinese companies. This information was given in a report of the news agency Reuters. A Pentagon spokesman said the Pentagon was in talks with other agencies to ban China’s SMIC. If the ban is imposed, if a US company or a US technology user wants to provide technology to SMIC, a license must be obtained. SMIC did not comment on the decision.

Whenever China begins to prioritize technology or industry, the Trump administration has been seen blacklisting it. So far, 285 Chinese-based companies have been blacklisted in the United States. These include Huawei Technologies and ZTE, which are working on telecom technology. Hick vision, a surveillance camera company, is also on the list.

Although SMIC is the largest chip maker in China, it is not of the quality of Taiwan Semiconductor Manufacturing Company Limited (TSMC). TSMC is leading in this sector. SMIC wants to compete with TSMC in making chips. A U.S. official said that although no specific reason had been given for taking action against SMIC, their involvement with the Chinese military was under scrutiny. Recently, the Trump administration has been looking at companies involved in boosting Beijing’s military.

Last month, the United States blacklisted 24 companies. In addition, many people also come under the surveillance of the United States. These organizations are thought to have been involved in the construction of Chinese installations and military activities in the South China Sea.

Billions of dollars are now being traded with microchips. Market analysts say that the use of electronics devices is increasing globally. At the same time, the demand for chips in the relevant devices is also increasing. The semiconductor business or chip manufacturing sector is expanding. Only US companies have so far dominated the chip industry. But now Chinese technology companies are invading the chip kingdom.

The Trump administration does not like it. According to The Economist, the 21st century trade war between the United States and China is largely based on technology. The competition there is about everything from artificial intelligence (AI) to network equipment. However, the main basis of the war is that semiconductor or chip. The conflict began with China’s ambition to retain the leadership of US institutions and become a superpower.

The Trump administration is considering blacklisting Chinese chip maker Semiconductor Manufacturing International Corporation (SMIC). An official with the country’s defense ministry said the Chinese chip maker could be involved in a US trade embargo. The United States is stepping up its crackdown on Chinese companies. This information was given in a report of the news agency Reuters.

A Pentagon spokesman said the Pentagon was in talks with other agencies to ban China’s SMIC. If the ban is imposed, if a US company or a US technology user wants to provide technology to SMIC, a license must be obtained. SMIC did not comment on the decision. Whenever China begins to prioritize technology or industry, the Trump administration has been seen blacklisting it. So far, 285 Chinese-based companies have been blacklisted in the United States.

These include Huawei Technologies and ZTE, which are working on telecom technology. Hickvision, a surveillance camera company, is also on the list. Although SMIC is the largest chip maker in China, it is not of the quality of Taiwan Semiconductor Manufacturing Company Limited (TSMC). TSMC is leading in this sector. SMIC wants to compete with TSMC in making chips. A U.S. official said that although no specific reason had been given for taking action against SMIC, their involvement with the Chinese military was under scrutiny.

Recently, the Trump administration has been looking at companies involved in boosting Beijing’s military. Last month, the United States blacklisted 24 companies. In addition, many people also come under the surveillance of the United States. These organizations are thought to have been involved in the construction of Chinese installations and military activities in the South China Sea. Billions of dollars are now being traded with microchips. Market analysts say that the use of electronics devices is increasing globally. At the same time, the demand for chips in the relevant devices is also increasing. The semiconductor business or chip manufacturing sector is expanding. Only US companies have so far dominated the chip industry. But now Chinese technology companies are invading the chip kingdom.

The Trump administration does not like it. According to The Economist, the 21st century trade war between the United States and China is largely based on technology. The competition there is about everything from artificial intelligence (AI) to network equipment. However, the main basis of the war is that semiconductor or chip. The conflict began with China’s ambition to retain the leadership of US institutions and become a superpower.

Freelancer Blogger and Writer. I am now studying CSE at Chengdu University Of Technology. Feel free to contact with me.

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