Sen. Marco Rubio (R-Fla.) is advocating for sanctions against Brite Semiconductor, a Chinese chip design company, due to its connections with China’s premier sanctioned chipmaker and its interactions with Chinese military suppliers.
What Happened: Rubio submitted a letter on Wednesday demanding sanctions on Brite. This Chinese enterprise provides chip design services to a minimum of six Chinese military suppliers and is part-owned by Semiconductor Manufacturing International Corporation (SMIC), the biggest chipmaker in China. SMIC has previously faced restrictions from obtaining some U.S. technology due to its purported ties to the Chinese military-industrial complex, as per a report by Reuters.
Despite these ties, Brite continues to utilize U.S. investment and technology, including chip design software from American companies like Synopsys Inc SNPS and Cadence Design Systems Inc CDNS.
In his letter, Rubio pointed out that Brite’s continued access to American technology demonstrates that the existing export-control system is aiding China’s rise as a technological superpower. “Prompt action is required to halt the growth of China’s chip industrial base,” Rubio penned, referring to the Reuters report.
Other legislators, including Sen. Bob Casey (D-Pa.), have also voiced criticism of Brite’s access to U.S. investors. Norwest Venture Partners, a venture capital firm in Silicon Valley that owns a 13.5% stake in Brite, is predominantly supported by Wells Fargo, America’s fourth-largest bank.
Why It Matters: This call for sanctions on Brite Semiconductor is not Rubio’s first attempt to curb Chinese influence on American technology. In March, Rubio also called for a ban on TikTok, citing it as a national security risk due to its control by the Communist Party of China. These moves underline Rubio’s ongoing concern over China’s increasing technological influence and the potential risks this poses to American national security.
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