Core Viewpoint - The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has added 23 Chinese entities to its Entity List, including Shanghai Fudan Microelectronics Group Co., Ltd., citing national security concerns related to advanced computing and semiconductor manufacturing support [1][3]. Group 1: Impact of Entity List Inclusion - Thirteen of the listed entities are related to semiconductors and integrated circuits, with others spanning biotechnology, aerospace, and industrial software [1]. - Fudan Microelectronics is notably the first Chinese IC design company to face such sanctions due to its commercial FPGA/MCU business, with nine other Chinese IC design companies also marked with a specific footnote indicating severe restrictions [3][5]. - The sanctions imply a full process blockade, affecting all manufacturing nodes and limiting access to U.S. equipment and design tools, which could extend R&D cycles and disrupt global supply chains [5]. Group 2: Company Response and Strategy - In response to the sanctions, Fudan Microelectronics issued a public letter emphasizing its commitment to legal and compliant operations, and its strategic reserve of key materials has increased from approximately 600 million yuan at the end of 2020 to about 3.1 billion yuan by mid-2025 [8]. - The company has diversified its supply chain and strengthened collaborations with partners to enhance resilience and production capacity [8]. - Fudan Microelectronics is advancing its R&D in heterogeneous computing architecture chips, with a product range from 4 TOPS to 128 TOPS, and has reported positive progress on its first 32 TOPS product [8]. Group 3: Financial Performance - For the first half of 2025, Fudan Microelectronics reported revenues of 1.839 billion yuan, a year-on-year increase of 2.49%, while net profit fell by 44.38% to 194 million yuan due to increased inventory provisions and reduced government subsidies [11]. - The company's R&D expenditure totaled 533 million yuan, a decrease of 10.80%, representing 28.99% of its revenue, down 4.32 percentage points from the previous year [11]. - As of September 15, 2025, Fudan Microelectronics' A-shares rose by 2.75%, with a market capitalization of 50 billion yuan [12].