Precise Investors

Saturday, July 2, 2022
Latest News

SMIC in preliminary talks with US over export restrictions


The Chinese chip manufacturer reiterated that it has been operating in accordance with relevant laws

Chinese chipmaker, Semiconductor Manufacturing International Corp (SMIC) said that it has undertaken “preliminary exchanges” with the US Bureau of Industry and Security regarding export restrictions.

The chipmaker said that the “company is conducting assessments on the relevant impact of such export restrictions on the company’s production and operation activities,” in a statement on Sunday.

SMIC, China’s biggest chip manufacturer reiterated that it has been operating in accordance with relevant laws and regulations in all the areas where it performs its business.

The US commerce department wrote to chip companies to inform them of the “risks” and that they must obtain licence to continue supplying goods and services to the company.

News of the restrictions, caused SMIC’s shares to sink to a four-month low in Hong Kong trading last week.

Huawei, which was de facto banned by the Trump administration, has faced similar measures by the commerce department.

Last week, following the restrictions on SMIC, Kioxia the world’s second largest maker of NAND flash memory chips, said that it would put plans for Japan’s biggest initial public offering (IPO) on ice.

The company planned to list on the Tokyo Stock Exchange on 6 October, it was due to reveal pricing for its $3.2bn (£2.5bn) listing before postponing.

Sony and the Japanese memory chipmaker, are seeking approval from the US commerce department to continue supplying Huawei Technologies, Nikkei has reported.

Kioxia warned tighter US restrictions could cause memory chip oversupply and drive down market prices.

Without the US licences, Sony and Kioxia are set to lose huge earnings.

Huawei is estimated to account for about a fifth, or roughly $9.5bn, of Sony’s image sensors sales.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply