China’s Largest Chipmaker Sinks After U.S. Restrictions
- SMIC’s shares extend monthly loss after export controls
- U.S. firms required to seek license to export products to SMIC
Photographer: Qilai Shen/Bloomberg
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Semiconductor Manufacturing International Corp. retreated to a four-month low in Hong Kong after the U.S. imposed export restrictions on China’s largest chipmaker.
The shares declined 3.9% on Monday, adding to their 25% loss for the month. Also listed in Shanghai, SMIC’s stock there slumped 7% to the lowest level since its July debut. U.S. firms must now apply for a license to export certain products to the chipmaker, the Commerce Dept. said in a letter dated Sept. 25, reviewed by Bloomberg News. SMIC and its subsidiaries present “an unacceptable risk of diversion to a military end use,” the department’s Bureau of Industry and Security wrote.