The U.S. Department of Commerce announced on December 18 that it has placed China’s largest chipmaker, Semiconductor Manufacturing International (SMIC), on its trade blacklist. In addition to SMIC, DJI, a Chinese drone company, is the latest to be placed on the “Entity List. DJI has not yet responded to this announcement.
According to Caixin on December 19, industry sources said that China’s domestic production of drones relies heavily on U.S. chips, but these chips usually do not involve advanced processes, mostly using mature processes ranging from 22nm to 40nm.
It is reported that DJI is the “giant” in the field of global drones. In its June 2020 update of the global drone market report, Drone Industry Insights, a German drone market research firm, said DJI’s share of the global commercial drone market is about 70-80%. The agency predicts that the global commercial drone market will reach $42.8 billion by 2025.
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