U.S. Senator Marco Rubio, a Republican lawmaker, has called upon the Biden administration to impose sanctions on the Chinese chip design firm Brite Semiconductor due to its connections with China's leading sanctioned chipmaker and its involvement with Chinese military suppliers. The move comes after recent reports revealed that Brite Semiconductor provides chip design services to multiple Chinese military suppliers and is partially owned by SMIC, China's largest chip manufacturer, which has faced restrictions on receiving certain U.S. technology due to alleged ties to the Chinese military-industrial complex.
Despite these affiliations, Brite Semiconductor currently enjoys access to U.S. investments and technology, including chip design software from American companies such as Synopsys and Cadence Design.
In a letter addressed to Commerce Department Secretary Gina Raimondo, Rubio emphasized that Brite's access to American technology highlights the inadequacy of the existing export-control system, which could inadvertently empower China as a technological force. He urged the Commerce Department to impose the same licensing requirements on Brite as those placed on SMIC.
Brite Semiconductor, the Commerce Department, and the Chinese embassy in Washington have not responded to requests for comment.
Notably, SMIC was placed on the Commerce Department's entity list during the Trump administration in 2020.
Rubio also called for stricter restrictions on the export of chip design software to China, aligning himself with a growing group of U.S. lawmakers from both sides of the aisle who are expressing concerns about Brite's role in China's military supply chain and its access to U.S. technology and investments.
Congressman Michael Gallagher, who leads the House of Representatives' select committee on China, described the Reuters report on Brite as "extremely troubling" and urged the Commerce Department to take more substantial measures to prevent the flow of U.S. technology to China's military.
It is worth noting that Reuters found no evidence of Brite or its U.S. suppliers violating U.S. export regulations.
Democratic Senator Bob Casey also raised concerns about Brite's access to U.S. investors, particularly highlighting Silicon Valley-based Norwest Venture Partners' 13.5% stake in Brite, predominantly backed by Wells Fargo, one of America's largest banks.
Brite Semiconductor is poised to gain access to a broader range of investors soon, as the Shanghai Stock Exchange recently approved its initial public offering, following previous concerns about its relationship with SMIC.
