The United States has imposed new trade restrictions on two Chinese companies accused of acquiring equipment on behalf of Semiconductor Manufacturing International Corporation (SMIC), China’s largest chipmaker. The move comes amid ongoing tensions between Washington and Beijing over access to advanced semiconductor technology.

Targeted Firms Linked to Procurement Activities

According to reports, the U.S. Commerce Department added the two firms to its trade restriction list, alleging that they helped SMIC secure chipmaking tools and components despite export curbs. Officials believe these companies were acting as intermediaries to bypass restrictions designed to prevent SMIC from accessing advanced U.S. technology.

Part of Broader U.S. Tech Strategy Against China

The penalties mark the latest step in Washington’s broader strategy to curb China’s ambitions in semiconductor manufacturing. The Biden administration has repeatedly emphasized national security concerns, claiming that SMIC’s access to advanced technology could benefit Beijing’s military modernization.

SMIC Already Under Heavy U.S. Scrutiny

SMIC has been on the U.S. Entity List since 2020, which restricts its ability to purchase American equipment and software. Despite this, the company has made progress in producing advanced chips, raising alarms in Washington. The latest sanctions aim to further tighten the noose by targeting firms that allegedly act as SMIC’s procurement arms.

Impact on Global Chip Supply Chain

Analysts suggest the move could intensify the U.S.-China tech war, adding more uncertainty to global chip supply chains. While SMIC continues to develop domestic alternatives, restrictions on critical tools and parts may slow down its progress in competing with leading global chipmakers like TSMC and Samsung.