Shares of SMIC (Semiconductor Manufacturing International Corporation), China's largest chipmaker, tumbled 19% on Monday after the US government said it is considering putting restrictions on the company's exports.
The US Department of Defense is evaluating the possibility of adding SMIC to the Department of Commerce's so-called Entity List.
"Such action would ensure that all exports to SMIC undergo a more complete review," a Defense Department spokesman said. For its part, China has long put a lot of emphasis and effort on developing its semiconductor industry, especially with the intensification of the trade war.
Chinese semiconductor companies still lag behind their Taiwanese and South Korean rivals, and they still depend on some parts they source from US suppliers. SMIC is not the first China on which Washington places its particular target.
The most famous case was and continues to be that of the also Chinese Huawei, that got to enter the controversial blacklist made by the Trump Administration.
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