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Monday, October 05, 2020, 18:04
SMIC says US is placing export restrictions on suppliers
By ​Bloomberg
Monday, October 05, 2020, 18:04 By ​Bloomberg

Employees operate at Semiconductor Manufacturing International Corp. (SMIC), in Shanghai, China, Feb 18, 2011.  (QILAI SHEN / BLOOMBERG)

China’s largest chipmaker said its US suppliers have been issued with letters telling them they are subject to additional export restrictions.

Semiconductor Manufacturing International Corp (SMIC) is evaluating the impact of the US Bureau of Industry and Security’s (BIS) export restrictions, which could have “material adverse effects” on its production and operations, it said in a statement 

Semiconductor Manufacturing International Corp (SMIC) is evaluating the impact of the US Bureau of Industry and Security’s (BIS) export restrictions, which could have “material adverse effects” on its production and operations, it said in a statement on Sunday, confirming reports last week of the controls. The chipmaker has had “preliminary exchanges” with the BIS in relation to the export restrictions and will continue to actively facilitate communications with relevant US government departments.

ALSO READ: Chip group 'to warn Trump against blacklisting SMIC'

SMIC dropped as much as 5 percent in Hong Kong on Monday, adding to its 27 percent 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 chipmaker on the so-called 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.

READ MORE: China urges US to respect fair competition principles

China’s Foreign Ministry said in a briefing last Monday that it would “continue to take necessary measures to safeguard Chinese businesses’ legitimate rights and interests.”


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