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Business & FinanceTech

Reuters first to report Trump administration considers blacklisting China’s SMIC; chipmaker’s shares tumble

Reuters was first to report the Trump administration was considering whether to add SMIC to the Commerce Department’s blacklist, a move that would effectively halt the shipments of U.S. goods to the company and severely harm its future prospects. A Pentagon spokeswoman said the Defense Department was working with other agencies to determine whether to make the move against Semiconductor Manufacturing International Corporation (SMIC), which would force U.S. suppliers to seek a difficult-to-obtain license before shipping to the company. Shares of SMIC’s U.S. equipment suppliers, including Lam Research and KLA Corp, fell 7-8%.

Market Impact

Shares of China’s top chipmaker SMIC fell 23% in Hong Kong stock trading after the news, while shares of the Chinese firms’ Asian and European rivals rose. Shares of SMIC’s U.S. equipment suppliers, including Lam Research and KLA Corp, fell 7-8%.



Article Tags
Topics of Interest: Business & FinanceTech
Type: Reuters Best
Sectors: Equities
Regions: AsiaNorth America
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Market Impact