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
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.
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.
US tightens exports to China’s biggest chip maker SMIC, citing risk of military use
China’s Foreign Ministry said in a briefing on Monday last week that it would “continue to take necessary measures to safeguard Chinese businesses’ legitimate rights and interests”.
Hua Hong Semiconductor, another Chinese chip maker, declined as much as 6.4 per cent in Hong Kong. Taiwanese rival United Microelectronics Corp gained more than 1 per cent.
