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Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

author:Eight Buckets of Financial Drafts

Speaking of the world-renowned semiconductor industry, it is estimated that the first thing that comes to mind is Intel, Samsung Electronics, TSMC, Qualcomm, SK Hynix, Micron Technology, etc., and the mainland's SMIC has now had a place in the semiconductor (chip) field after 23 years of development.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Semiconductors (chips) are indispensable things in modern electronics manufacturing, also known as the heart of modern industry, and the development of the global chip industry is particularly noteworthy today.

Previously, because of the US sanctions against Huawei, SMIC unexpectedly attracted everyone's attention.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

According to online rumors, it did not lend a helping hand at Huawei's critical moment. This also made many netizens feel indignant, as a Chinese company would do such a thing.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

As public opinion intensified, SMIC also issued an official statement, claiming that it did not supply Huawei normally because it complied with local laws.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

To put it bluntly, it is to abide by the laws of the United States, and now people are even more confused, let's take a look at the things behind it.

Many people mistakenly think that SMIC is a state-owned enterprise, but this is not actually inaccurate.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

SMIC was founded in Lianyungang, China in 2000, listed in Hong Kong in 2004 and most recently listed on the Shanghai Stock Exchange.

With SMIC's continuous growth, foreign capital optimistic about the mainland market has entered the market. Although it is a Chinese company, its founder, Zhang Rujing, is a Taiwanese-American native.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

It can also be seen from the Huawei incident that mainland technology companies are facing many restrictions and challenges in their development in the United States.

SMIC is also bound by U.S. law and has no way to provide Huawei with any help it can, and it also revealed in its official statement that it will strictly abide by local laws and regulations in its future operations. When permitted, we have been willing to maintain cooperation with various enterprises to ensure the stable development of the company.

It seems that SMIC is also helpless to the Huawei incident, and the United States has always done so, which also reflects the importance of capital.

In recent years, due to the US sanctions against the mainland chip field, the importance of domestic independent research and development and independent innovation is particularly important.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

As one of the largest chip manufacturers in mainland China, SMIC's autonomy must be in our own hands to be a long-term solution for development.

For this reason, many state-owned capital has increased investment, and foreign shares have also been greatly reduced.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Recently reported that SMIC's shareholding structure has undergone major changes, and SMIC announced a plan to issue new shares last year, with the aim of increasing the proportion of domestic equity and reducing the proportion of foreign equity to improve the company's independence and self-control ability.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

At present, its main shareholders are all national capital, including the State-owned Assets Supervision and Administration Commission, Shanghai Integrated Circuit Industry Investment Fund, Shenzhen State-owned Capital Operation Co., Ltd., etc.

Slowly, our actual control over SMIC has also greatly increased, greatly reducing the influence of foreign investment.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

According to mainland regulations, in order to determine which country the enterprise belongs to, the first thing to look at is where the actual management agency of the company is.

SMIC's corporate headquarters is located in Shanghai, and SMIC can also be said to be a mainland enterprise.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

In addition to the above-mentioned share restrictions, another reason why SMIC cannot supply Huawei is the Varnathan Agreement of the United States.

The Vanessen Agreement, also known as the Export Control Act, is a regulation enacted by the United States in 1977 to restrict American businesses. When U.S. companies provide high-quality imitation military goods and high-tech to China, they must be recognized by U.S. institutions.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Since a lot of the technology used by SMIC comes from Laomei, it is also limited by this agreement.

It can be seen that although SMIC is a Chinese company, it must also comply with international laws and regulations. Therefore, SMIC's problems are caused by both external regulations and its own technical level.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Therefore, SMIC's failure to help Huawei is not a simple matter of white and black.

SMIC can also ignore the rules of the United States and can provide some help to Huawei, but the foreign companies that provide it with equipment and technology will definitely follow the instructions of the United States and cut off cooperation with SMIC.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

It is estimated that by then, SMIC is likely to become the second Huawei.

In fact, at the beginning of the United States' preparation to start sanctions against Huawei, SMIC had already sent a goodwill reminder to the other party.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Many netizens expressed their understanding, after all, if a company wants long-term development, it must start from the overall situation, and the difficulties are only temporary.

However, there are also many netizens who do not understand, even if it is for future development, it cannot easily succumb to the coercion of the United States, otherwise we will independently develop it.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Do you think that with the American approach, SMIC will easily let go of SMIC, even if SMIC strictly abides by the relevant regulations, it is still sanctioned by the United States?

The reason given is also very simple, that is, it is suspected that SMIC's continental military provides the relevant technology. This is simply a sin, and there is no end to it.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

In fact, SMIC has long been working on independent research and development, and this year SMIC also announced its own plan, hoping to achieve a breakthrough in China's chip 5nm in 3 years.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

It can also be seen that SMIC plays a pivotal role in the future development of mainland chips.

There is also the most important point, which is also a problem faced by the mainland chip field, that is, the equipment lithography machine that produces chips.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

As long as SMIC continues to use it, the lithography machine provided by ASML in the Netherlands must abide by the rules of the United States, and the major shareholder behind ASML is American capital.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Continental is also aware of the main nature of lithography machines and is also independently developing them. The United States has joined forces with the Netherlands, South Korea, Japan and other countries to impose a technological blockade on China, and the technology and raw materials in the field of chips, and the fields related to the manufacture of lithography machines are all blockaded like the mainland.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

It seems that we can only really have a say if we develop our own lithography machine.

Chips are the heart of modern industry, involving all walks of life, and now more than 90% of high-tech are inseparable from the blessing of chips.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

It can be seen that there is still a long way to go in the future, and only by constantly breaking through ourselves and working hard to specialize in new technologies can we break the situation of being controlled by people, which also requires the unremitting efforts of generations of our scientific researchers.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Write at the end

Technology will always be a strong driving force for economic development, and the affairs of SMIC and Huawei have sounded the alarm for us, and independent research and development is the only way out.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

Relying on mountains and mountains, relying on water and water, we can only rely on ourselves.

We must carry forward the spirit of the Chinese nation of bearing hardships and standing hard work, bravely climb the peak of science, and cultivate follow-up talents, so that we can gradually get rid of the control of others.

Why does SMIC comply with U.S. law and cannot supply Huawei? The truth is now revealed!

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