Japan and the Netherlands recently joined forces with the United States in putting a ban on the use of technology produced by Semiconductor Manufacturing International Corporation (SMIC), a Chinese satellite company, in products manufactured in their countries. This move came after growing suspicions about SMIC’s relationship with China’s armed forces and information services. The ban was imposed to safeguard the privacy of responsible citizens, secure global communications, and maintain high-quality safety standards concerning device utilization and production worldwide.
Japan announced a ban on government purchases of SMIC microchips in December 2022, aimed at protecting sensitive systems and technology. The Dutch government followed suit and took the measure even further by imposing an additional ban in January 2023, which covered not only governmental entities but also private sector purchasers. This ban encompasses all SMIC chips used within the Dutch borders.
This ban is a positive sign of the countries’ efforts to address growing concerns over technology and national security. Tensions have been escalating globally, and this ban serves as a reminder of the importance of ensuring the security and reliability of technology supply chains.
The United States first imposed a ban on SMIC back in 2022, which has severe consequences for the company’s business and restricts its ability to participate as a player in the global semiconductor scene. The ban denies SMIC access to two valuable markets forever, and many speculate whether SMIC will be able to maintain its supply chains in the face of such damaging action.
In response to the U.S led sanctions, SMIC has announced that it is taking an active role in amending its standing with US authorities, hoping to reset its relationship amidst the turbulence it is experiencing. The future, however, remains uncertain.
In conclusion, Japan and the Netherlands joining U.S. on the ban of SMIC microchips is a significant development in the growing tensions over technology and national security between China and other nations. The ban is likely to have a major impact on SMIC’s business and underscores the importance of ensuring the security and reliability of technology supply chains.
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