The Chinese chip designer Brite Semiconductor, part-owned by sanctioned chipmaker SMIC, is acquiring U.S. software with American financial backing, highlighting the challenges the U.S. faces in enforcing rules meant to restrict American support for China’s semiconductor industry. Despite SMIC’s entity list status, Brite has U.S. venture capital funding and access to sensitive U.S. technology from software companies Synopsys and Cadence Design. While not violating regulations, this situation emphasizes the difficulty in preventing U.S. equipment and money from aiding China’s military ambitions, raising concerns among policymakers about the effectiveness of current restrictions.
Chinese chip designer, linked to sanctioned firm, raises questions on U.S. oversight.
