The U.S. Department of Commerce stated that the Biden administration will take into consideration the concerns raised by Republican Senator Marco Rubio from Florida when deciding which companies to include on the trade sanction list.
Last December, Reuters reported that Brite Semiconductor (referred to as Brite), a chip design company in China, partly owned by Semiconductor Manufacturing International Corporation (SMIC), which is already blacklisted, and provides chip design services to at least six Chinese military suppliers. Senator Rubio immediately expressed his concerns to the Commerce Department and called for sanctions against the company.
According to Reuters, the Shanghai-based company received support from U.S. funds, including Wells Fargo, and can use top-notch chip design software manufactured by Synopsys and Cadence in the United States.
Rubio wrote to Commerce Secretary Gina Raimondo in December, citing Reuters’ report, stating that “The example of Brite Semiconductor shows the need to take action quickly to prevent China’s chip industry base from growing stronger.”
“I urge you to impose the same licensing requirements on Brite Semiconductor as on Semiconductor Manufacturing International Corporation,” Rubio said.
SMIC is China’s largest chip manufacturer and has been placed on the U.S. trade sanction list (entity list) due to its clear connections with Chinese military enterprises. SMIC has always denied any relationship with the Chinese military, stating that its chip production and services are “completely for civil and commercial end-users and applications.”
An official from the Department of Commerce wrote in response to Rubio on March 8, stating, “Regarding Brite Semiconductor, we will keep your concerns in mind when evaluating potential new additions to the entity list.”
Rubio welcomed the response and urged the agency to take more concrete measures.
Rubio stated, “The Commerce Department recognizes the authority to blacklist Brite Semiconductor and strengthen export controls on U.S. chip design software, which is encouraging. However, these words are meaningless unless the Biden administration takes swift action.”
When asked for a comment, the Chinese Embassy in Washington firmly opposes the U.S. “exaggeration” of national security concepts and the creation of discriminatory lists. A spokesperson for the embassy said in an email, “We urge the United States to immediately correct these discriminatory practices and provide a fair, just, and non-discriminatory business environment for Chinese companies.”