SMIC Says U.S. Is Placing Export Restrictions on Suppliers
- Chipmaker’s shares drop as much as 5%, adding to recent losses
- Company is in discussions with U.S. officials over ruling
Employees operate at Semiconductor Manufacturing International Corp. in Shanghai.
Photographer: Qilai Shen/Bloomberg
China’s largest chipmaker said its U.S. suppliers have been issued with letters telling them they are subject to additional export restrictions.
Semiconductor Manufacturing International Corp. is evaluating the impact of the U.S. Bureau of Industry and Security’s 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 U.S. government departments.