China’s Largest Chipmaker Sinks After U.S. Imposes Restrictions

SMIC Targets Sales Increase Of As Much As 20% In 2011

Photographer: Qilai Shen/Bloomberg

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 slumped as much as 7.9% on Monday, adding to their 25% loss for the month. Also listed in Shanghai, SMIC’s stock there retreated as much as 5.8% 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.

Read more: U.S. Imposes Restrictions on Exports to China’s Top Chipmaker

The U.S. stopped short of placing SMIC on the so-called entity list, which means the restrictions are not yet as severe as

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