Chinese Chip Equipment Maker AMEC Sues U.S. Over Military Blacklist

Move follows lidar maker Hesai's legal challenge against Department of Defense

· AMEC has "never been involved in any military-related activities

Chinese semiconductor equipment maker Advanced Micro-Fabrication Equipment (AMEC) on Friday announced it has filed a lawsuit in an American court against the U.S. Department of Defense for adding it to a blacklist.

In January, Shanghai-based AMEC was included in the DOD's list of "Chinese military companies" operating in the U.S. The company said the inclusion was "erroneous, factually incorrect, without legal basis, and in violation of procedural due process, which has had a significantly detrimental impact on AMEC's reputation."

AMEC has "never been involved in any military-related activities," it added.

The lawsuit comes days after the Financial Times reported that the DOD plans to remove another company, vehicle lidar maker Hesai Technology, from the blacklist. Hesai had sued the DOD in May and its CEO, David Li, recently told Nikkei Asia that allegations of military ties are "ridiculous."

AMEC did not immediately reply to questions over the timing of its litigation. A DOD spokesperson said the department does not comment on ongoing litigation.

The chip equipment maker said in its statement that it had been included in a "Communist Chinese Military Companies List" in January 2021 but was removed in June of the same year after it presented the department with "sufficient facts and evidence."

Gerald Yin, AMEC's chairman and CEO, was quoted as saying: "We are deeply shocked by the designation of AMEC again on the military-related list by the DOD. Such designation was wrong and groundless."

AMEC produces equipment used in the fabrication of chips, such as etching. In the first quarter of this year, the company reported 1.6 billion yuan ($223 million) in revenue, up 31% from a year earlier.

The Shanghai-listed company's shares fell 1% on Friday.