SMIC’s Hong Kong Shares Tumble Soon after U.S. Tightens Export Limitations | Investing Information

HONG KONG (Reuters) – Hong Kong-shown shares of Semiconductor Producing Worldwide Corp fell much more than 7% on Monday soon after the United States imposed constraints on exports to China’s largest chip maker, citing a chance of military use.

SMIC’s shares fell as considerably as 7.9% to HK$17.12 ($2.21), the lowest given that May perhaps 29, and were being previous down 6.7%.

The organization reported it had not gained any official discover of the limitations and additional it has no ties with the Chinese army.

Suppliers of particular devices to SMIC will now have to use for personal export licenses, in accordance to a letter from the U.S. Commerce Division dated Friday and viewed by Reuters.

Earlier this 12 months SMIC lifted $6.6 billion in a secondary listing on Shanghai’s tech-centric STAR sector.

The enterprise explained it meant to use the cash to construct out added ability for making state-of-the-art chipsets.

SMIC a short while ago commenced manufacturing chips at the 14 nanometer procedure node, about two generations guiding the engineering applied by rival Taiwan Semiconductor Producing Co Ltd.

The restrictions, nevertheless, throw a wrench in SMIC’s ideas as it relies on equipment produced by providers hailing from the U.S. or U.S-allied nations.

Subsequent information of the constraints, an op-ed published on Sunday in the World Periods, a tabloid owned by state-backed media outlet People’s Day-to-day, identified as for China to embark on a “prolonged tech march” to counter the U.S.’ substantial-tech suppression in opposition to China.

(Reporting by Donny Kwok in Hong Kong and Josh Horwitz in Shanghai Enhancing by Kim Coghill and Shounak Dasgupta)

Copyright 2020 Thomson Reuters.

Leeanne

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