Shares in China’s top chipmaker SMIC fall after US blacklisting

Shares in China’s biggest chipmaker fell more than 7 per cent on Monday in Hong Kong after Washington imposed export restrictions that could cut off Semiconductor Manufacturing International Corporation from crucial US equipment and software.

Washington’s move to curb critical supplies to SMIC further threatens the development of China’s domestic semiconductor industry, after the Trump administration had already cut Huawei off from its chip suppliers. 

Shares in SMIC fell as much as 7.9 per cent in Hong Kong on Monday to their lowest since May 29, while its Shanghai-listed stock dropped as much as 6.6 per cent.

The US Department of Commerce told companies on Friday that exports to SMIC carried an “unacceptable risk” of being diverted to “military end use”, according to a copy of the letter seen by the Financial Times. Companies would now require licenses to sell specific products to SMIC, it added.

The Shanghai-based company, one of China’s national champions, is an important part of Beijing’s push to forge a self-sufficient domestic chip industry. SMIC raised $7.6bn in…

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