SMIC Dives 15% on Report U.S. Is Considering Blacklisting Chipmaker
- Shares plunge the most in more than seven weeks in Hong Kong
- Chipmaker denies any relationship with China’s military
Photographer: Qilai Shen/Bloomberg
This article is for subscribers only.
Semiconductor Manufacturing International Corp. tumbled the most in seven weeks following a report that the Trump administration was considering adding the chipmaker to a blacklist amid an escalating crackdown on Chinese technology companies.
The shares plunged 23%, the most since July 16, at the close of trading in Hong Kong, contributing to a 4.6% rout in the Hang Seng Tech Index. Fellow Chinese chipmaker Hua Hong Semiconductor Ltd. plummeted more than 14%. The Defense Department is working with other U.S. agencies to determine whether to take action against SMIC, which would force American suppliers to seek a special license before shipping to the company, Reuters reported on Friday.