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SMIC reportedly gets supply licenses from US suppliers

Arlene HuangMarch 1, 2021

SMIC has obtained supply licenses from some US equipment vendors and can regain supply of semiconductor equipment for mature processes such as 14nm and 28nm, according to Laoyaoba.com.

SMIC has been trying to apply for some key equipment for the 14nm process, but it has not been approved.

US equipment suppliers have recently resumed the supply of components and field services to SMIC. After formally receiving a supply license from the US equipment vendor, SMIC will have a promising operational outlook, according to a report issued by Morgan Stanley.

After SMIC was placed on the US’s Entity List last year, suppliers of products or technologies subject to the US Export Control Regulations must first obtain an export license from the Department of Commerce of US before supplying to SMIC.

For products or technologies for 10nm and below (including EUV lithography), the Department of Commerce will adopt the Presumption of Denial policy for review; SMIC's provision of foundry services to some special customers may also be subject to certain restrictions.

From the available news, SMIC's sub-10nm process, especially the future 7nm and 5nm process, still has a long way to go.

After the company was included in the entity list, the company and its suppliers both actively apply for permits, said co-CEO Zhao Haijun during SMIC's Q4 2020 earnings call.

SMIC's revenue up 10.3% year-on-year to $1.03 billion in Q4

SMIC reportedly gets supply licenses from US suppliers-CnTechPost

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