SMIC0981

DFARS 252.246-7007 (Contractor Counterfeit Electronic Part Detection and Avoidance) and related supply-chain diligence expect contractors to understand restricted-party and single-source exposure in their electronics supply base. This brief summarizes PUBLIC firm-level signals (sanctions lists, federal spending proxies, supplier graph) — not component BOM provenance.

CRITICAL — SMIC is itself sanctioned (BIS-EntityList, NDAA-1260H, NDAA-CMIC); direct suppliers sanctioned: NAURA Technology [BIS-EntityList], AMEC (Advanced Micro-Fabrication) [BIS-EntityList, NDAA-1260H], Piotech [BIS-EntityList], Kingsemi [BIS-EntityList], Zhongke Feice Technology [BIS-EntityList], Shanghai Micro Electronics (SMEE) [BIS-EntityList], SiCarrier [BIS-EntityList]. A sanctioned node in the immediate supply path is a binary procurement risk that overrides all favorable factors.

• Self: FLAGGED (BIS-EntityList, NDAA-1260H, NDAA-CMIC)
• Supplier NAURA Technology — BIS-EntityList
• Supplier AMEC (Advanced Micro-Fabrication) — BIS-EntityList, NDAA-1260H
• Supplier Piotech — BIS-EntityList
• Supplier Kingsemi — BIS-EntityList
• Supplier Zhongke Feice Technology — BIS-EntityList
• Supplier Shanghai Micro Electronics (SMEE) — BIS-EntityList
• Supplier SiCarrier — BIS-EntityList

• 2h · SMIC → NVIDIA → Scale AI
• 3h · SMIC → Broadcom → Furukawa Electric → GlobalFoundries
• 3h · SMIC → Broadcom → InnoLight Technology → Marvell Technology
• 4h · SMIC → Broadcom → Furukawa Electric → TSMC → Valens Semiconductor

1. Treat as procurement veto candidate until counsel clears restricted-party status and ownership aggregation.
2. Map dual-source options for 7 sanctioned direct supplier(s); document acceptance risk.
3. Run multi-node stress on this firm plus peer producers; quantify DoD-path blast before sole-source buy.
4. Preserve shortest DoD path strings in the auditor pack for program-office handoff.