Pentagon now considers China’s 3D NAND maker YMTC a ‘military company’ — designation bars company from using US-designed chipmaking equipment

Key Points:

  • The Pentagon has classified Chinese technology firms, including YMTC, as ‘military companies’ due to national security risks, leading to various restrictions, while SMIC Hong Kong International Co. Ltd. was excluded from the list.
  • The inclusion on the 1260H list does not ban operations in the U.S. but renders companies ineligible for Defense Department contracts and could lead to further actions like blacklisting by the U.S. Treasury Department.
  • SMIC and YMTC are on the Entity List of the U.S. Department of Commerce, limiting their access to advanced U.S. technologies, which may affect their business prospects in the United States.

Summary:

The Pentagon has designated several Chinese technology firms, including Yangtze Memory Technologies Corp. (YMTC), as ‘military companies’ due to national security risks, leading to a ban on the U.S. military from purchasing devices featuring their chips and restricting these companies from buying advanced chipmaking equipment based on U.S. intellectual property. SMIC Hong Kong International Co. Ltd. was excluded from the list, raising questions about its eligibility for Defense Department contracts. SMIC and YMTC are also on the Entity List of the U.S. Department of Commerce, limiting their access to advanced U.S. technologies.

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