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Chinese chip maker SMIC says US is placing export restrictions on its suppliers
- Shanghai-based SMIC has had ‘preliminary exchanges’ with the US Bureau of Industry and Security in relation to the restrictions
- The chip maker said the US export restrictions could have ‘material adverse effects’ on its operations
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Semiconductor Manufacturing International Corp (SMIC), mainland China’s biggest chip maker, said its US suppliers have been issued with letters telling them they are subject to additional export restrictions.
Shanghai-based SMIC is evaluating the impact of the export restrictions enforced by the US Bureau of Industry and Security (BIS), which could have “material adverse effects” on its production and operations, the company said in a statement on Sunday, confirming reports last week of the controls.
The chip maker has had “preliminary exchanges” with the BIS, an agency under the US Department of Commerce, in relation to the export restrictions and will continue to actively facilitate communications with relevant US government departments.
Shares of SMIC dropped as much as 5 per cent in Hong Kong on Monday, adding to its 27 per cent slump in September – when reports the White House was considering taking action against the company first emerged.
While the US Commerce Department stopped short of placing the chip maker on the government’s Entity List, the measures mean that SMIC has become the latest Chinese technology company to be targeted by the Trump administration amid an escalation of tensions between Washington and Beijing.
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