By Alimat Aliyeva

One of the largest chip manufacturers in China, Advanced Micro-Fabrication Equipment Inc (AMEC), has sued the Pentagon for blacklisting the company, prohibiting it from doing business with American firms, Azernews reports.

AMEC said it was unfairly linked to the People's Liberation Army of China, damaging the company's business and reputation. At the same time, the leadership of the Shanghai manufacturer mainly consists of Americans.

The Chinese company competes with leading American firms, including Applied Materials Inc. and Lam Research Corp. In its latest annual report, AMEC said that some of its machines are now being used to produce chips with 5-nanometer technology, that is, with technologies lagging behind the most advanced by just one generation.

"We believe that the court will make a fair decision and oblige to exclude AMEC from the list. Meanwhile, we are actively working to maintain communication with the Ministry of Defense to properly resolve the dispute," the company said in a statement.