US Adds Chinese Chip Firms to Trade Blacklist

• Washington expands its Entity List with 32 companies, citing unauthorized tech transfers and military links involving SMIC and Fudan Microelectronics.

Sanctions Target SMIC-Linked Equipment Transfers

The U.S. Department of Commerce has added 32 entities to its restricted trade list, known as the Entity List, citing concerns over unauthorized technology transfers. Among them are two Chinese firms—GMC Semiconductor Technology (Wuxi) Co and Jicun Semiconductor Technology—that allegedly acquired American chipmaking equipment for Semiconductor Manufacturing International Corporation (SMIC). These companies reportedly supplied tools to SMIC Northern Integrated Circuit Manufacturing and Semiconductor Manufacturing International (Beijing), both of which were already subject to export restrictions. Under current regulations, shipping U.S.-origin equipment to these entities requires licenses that are typically denied.

This latest move reflects Washington’s ongoing efforts to limit China’s access to advanced semiconductor technologies. SMIC, China’s leading chipmaker, has been a focal point of U.S. export controls due to its potential role in military applications. By targeting intermediary firms, the U.S. aims to close loopholes that allow restricted technology to reach blacklisted entities. The sanctions underscore the growing scrutiny of China’s semiconductor supply chain.

Fudan Microelectronics Faces Additional Restrictions

Shanghai Fudan Microelectronics Technology Co was also added to the Entity List, along with affiliated companies in Singapore, Taiwan, and mainland China. The Commerce Department cited the firm’s involvement in high-performance computing and its support for China’s military modernization efforts. Fudan is accused of supplying technology directly to China’s military, government, and security sectors, raising national security concerns. In addition, the company reportedly provided components to Russian military end users, prompting further restrictions beyond the standard listing.

These allegations place Fudan at the center of a broader geopolitical conflict over technology and defense. The company’s activities in advanced computing and integrated manufacturing have drawn attention from regulators seeking to prevent sensitive technologies from being repurposed for military use. U.S. officials have emphasized the need to safeguard critical supply chains from exploitation. The expanded sanctions reflect a more aggressive stance on dual-use technologies and cross-border tech flows.

Global Scope of Trade Restrictions Expands

While most of the newly listed entities are based in China, the update also includes firms from India, Iran, Turkey, and the United Arab Emirates. The Commerce Department did not specify the exact nature of these companies’ violations but indicated they were involved in activities that raised similar concerns. These additions signal a widening scope of U.S. export controls, extending beyond East Asia to other regions with growing tech sectors. The move is part of a broader strategy to regulate the global flow of sensitive technologies.

None of the sanctioned companies have publicly responded to the listing, and attempts to reach them for comment were unsuccessful. The Entity List designation restricts access to U.S.-origin goods and services, often cutting off critical components and software. Companies placed on the list face reputational damage and operational challenges, especially if they rely on American technology. The long-term impact of these sanctions will depend on how effectively affected firms can pivot to alternative suppliers or domestic solutions.