Chinese chip equipment maker Advanced Micro-Fabrication Equipment (AMEC), is suing the US defence department for labelling it as a “Chinese Military Company”.
AMEC, which filed the lawsuit on Friday, has been a key part of China’s push to develop its domestic semiconductor industry and cut its reliance on foreign technology, with major chip foundries, such as Semiconductor Manufacturing International Corp, among its clients.
In a statement, AMEC called the designation “erroneous, factually incorrect, without legal basis, and in violation of due process”.
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It was one of a group of companies added to the list of Chinese Military Companies by the Department of Defense (DoD) in January.
“We are deeply shocked by the designation of AMEC again on the military-related list by the DoD,” Chairman and CEO Gerald Yin said in the statement. “Such designation was wrong and groundless.”
The company had had no success in efforts to get the US department to remove it from the list, it said.
The lawsuit, filed in US District Court in Washington DC, seeks a court order removing AMEC from the list. The company said it has never been involved in military activities and strictly complies with all laws and regulations.
While the designation does not directly affect AMEC’s business operations, it could affect its reputation and serves as a stark warning to US entities about the risks of doing business with the company, analysts have said.
- Reuters with additional editing by Sean O’Meara
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