The department said Monday that Fujian Jinhua Integrated Circuit Co., company poses a significant risk of getting involved in activities that could misuse the USA chip technology and hurt the U.S. military systems. The company should soon be completing a DRAM factory that could be the largest such factory in the world.
"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security", he said.
The U.S. diplomats are concerned about mediating the problem arising out of technology transfer and intellectual property when carrying out trade talks.More news: Curry sets National Basketball Association records as Warriors thump Nets
The Commerce Department is restricting USA exports to a Chinese DRAM producer over claims the company stole the manufacturing technology from the US. That could force USA military systems to rely on Chinese-made technology.
United States media say American semiconductor maker Micron Technology is suing the Chinese company. The company has now been put on what is known as an Entity List, which will require Jinhua to apply for a license in order to receive USA exports of commodities, software, and technology.
Recently, the United States hindered China's ZTE from working with USA organizations after it discovered it had disregarded U.S. sanctions against Iran and North Korea. "The additional production, in light of the likely USA -origin technology, threatens the long-term economic viability of US suppliers of these essential components of US military systems". Micron officials allege the company, based in Fujian Province, has violated the USA firm's intellectual property rights.More news: Cardiff, Leicester match to go ahead following death of Vichai Srivaddhanaprabha
It was not immediately clear what effect the Commerce Department action will have on Fujian Jinhua's operations. "Placing Jinhua on the Entity List will limit its ability to threaten the supply chain for essential components in our military systems", said Wilbur Ross, Secretary of Commerce.
The Fujian-based DRAM maker is nearing completion of a vast $5.7bn wafer-manufacturing plant, which will help drive the Made in China 2025 strategy of self-reliance.
The order marks the second USA action this year blocking technology exports to a Chinese buyer.More news: India unveils world's tallest statue "Statue of Unity"