LRCX - U.S. chip suppliers slow to receive licenses for banned foundry SMIC

Last year, the U.S. Department of Commerce put SMIC (SMICY), China's largest chip foundry, on the banned entity list, which requires domestic companies to apply for licenses in order to supply to SMIC.License decisions are supposed to come within a month of the application, but Reuters sources say the Biden administration is asking follow-up questions that pauses the decision clock.The questions reportedly center around whether the technologies could help SMIC make advanced chips of 10nm or smaller.Lam Research (LRCX) tells Reuters it's application is still pending.During an earnings call last month, Applied Materials (AMAT) said its guidance assumed its licenses wouldn't get approved but the company hasn't provided an update on the license status.The license delays are happening during a global semiconductor shortage, but approving these licenses wouldn't help that problem.Adding production capacity at a foundry takes significant time and money and the hard-hit auto industry uses older process technologies, which aren't

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U.S. chip suppliers slow to receive licenses for banned foundry SMIC