Shares in China’s biggest chip maker tumbled Monday on reports that Washington had imposed export controls on the company, the latest salvo in the battle for technological dominance over Beijing.
In a new blow for China’s advanced tech ambitions, the US Commerce Department reportedly ordered companies to seek permission before selling equipment to Semiconductor Manufacturing International Corp (SMIC).
Equipment sold to the Chinese company posed an “unacceptable risk” of being diverted to “military end use”, according to a letter sent to major US computer chip firms that was seen by The Wall Street Journal and the Financial Times.
News of the letter, which was first reported Saturday, sent SMIC’s Hong Kong-listed shares plunging as much as 7.9 percent to a four-month low Monday morning, extending a 25 percent loss for the month as investors fretted it would soon be targeted for sanctions by Washington. It later recovered some losses to