Shares collapse after tricky export limitations
According to the recently issued report, Hong Kong listed shares of Semiconductor Manufacturing International Corporation (SMIC) dropped to more than seven percent on Monday just after the United States of America imposed tighter limitations on exports to the biggest chip maker of China, placing a difficulty of military usage. Based on the current analysis, shares of the SMIC declines to almost 7.9 percent to $2.21 which is recorded as the lowest figure since 29th of May and it were previously decreased to 6.7 percent.
During a recent statement the company told that it had not gathered any kind of official notification regarding the export limitations as well as also said that it has no ties with the military group of China. Reportedly, numerous suppliers of specific equipment to SMIC will now have to register for separate export licenses, as per the letter released from the United States Commerce Department on Friday.
At the start of this year, SMIC gained around $6.6 billion in a second round of listing on the tech-centric company of Shanghai, STAR market. Furthermore, the firm stated that it intended to utilize desirable funds to develop extra capacity for offering modern chipsets. The Chinese chipmaker firm currently started developing chips at the 14 nm process node which is about 2 generations behind the technology that used by contender Taiwan Semiconductor Manufacturing Co Ltd.
However, the source said that the limitations throw a twist in the plans of SMIC because it depends on equipment developed by firms driven from the United States or American allied countries. Following reports of the limitations, as published in one of the well-known newspapers, a tabloid captured by state-supported media outlet called People’s Daily, named for China to register on durable technology march to encounter American high-tech defeat against China.