Wednesday, March 29, 2023
Khmer Daily Cambodia News
34 °c
Phnom Penh
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
The Khmer Daily
No Result
View All Result
Home World

China chip giant SMIC shares sink on US export controls

September 29, 2020
in Business, Tech, World
0
China chip giant SMIC shares sink on US export controls
0
SHARES
15
VIEWS
Share on FacebookShare on Twitter

AFP – Shares in China’s biggest chipmaker tumbled yesterday on reports that the United States had imposed export controls on the company, the latest salvo in the countries’ battle for technological dominance.

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 sent SMIC’s shares plunging in both Shanghai and Hong Kong yesterday, closing down 7 and 3.9 percent respectively.

Asked about the new controls at a daily news conference yesterday, Chinese foreign ministry spokesman Wang Wenbin said Beijing opposed Washington “abusing export controls and other restrictive measures to unreasonably suppress Chinese companies”.

Advanced tech has become one of the many battlefronts that have opened up in the past few years as relations between Beijing and Washington plummet to their lowest levels since diplomatic relations were restarted in 1979.

SMIC is China’s biggest contract manufacturer of chipsets and a key pillar of Beijing’s plans to achieve semiconductor self-reliance.

Analysts say China’s dependence on foreign – including US-made – chips hinders that national goal.

Backed by several state-owned entities, SMIC has made strides at improving China’s chip capabilities but it remains heavily reliant on imported equipment and software.

Under the new rules announced by the Commerce Department, US companies that want to sell equipment to SMIC will have to apply for a licence.

“The restriction, once implemented, will severely damage SMIC’s existing and future manufacturing capabilities, and customer trust,” Bernstein analysts led by Mark Li wrote in a note.

“Without steady supply and service from the US, the yield and quality of SMIC’s capacity will degrade, as early as in a few months for more advanced nodes.”

SMIC said yesterday it had yet to receive any notification of the new restrictions from the Commerce Department.

“The company has no relationship with the Chinese military and does not manufacture for any military end-users or end-uses,” it said in a statement.

The export restrictions for SMIC come after a similar US campaign to hobble Chinese telecom giant Huawei, which Washington fears could allow Beijing to tap into global telecoms networks.

The Commerce Department in May announced plans to cut off Huawei’s access to global semiconductor supplies, which the company said would threaten its survival.

The move against SMIC is less severe than placing Huawei on its so-called entity list – a de facto blacklisting – but it will probably further anger Beijing.

Donald Trump has become increasingly hawkish towards China as he battles for re-election in November.

His administration has also announced plans to ban Chinese social media apps TikTok and WeChat on national security grounds.

Those advocating a more hawkish stance towards Beijing have long warned of a symbiotic relationship between Chinese companies and the country’s military and security apparatus.

They have also complained of unfair trade practices such as intellectual property theft and state-sponsored cyber espionage.

But many analysts argue that Trump’s actions could backfire on the US tech sector and other US businesses by encouraging China and other countries to respond in kind.

Bloomberg News contributed to this story

This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.

Tags: China chipchipmakerSMIC
Previous Post

Puzzled scientists seek reasons behind Africa’s low fatality rates from coronavirus pandemic

Next Post

Cost of living in Cambodia data goes against local sentiment

Related Posts

China threatens retaliation if US House speaker meets Taiwan president

China threatens retaliation if US House speaker meets Taiwan president

by AsiaOne
March 29, 2023
0
7

BEIJING/TAIPEI — China threatened to retaliate on Wednesday (March 29) if US House Speaker Kevin McCarthy meets Taiwan President Tsai Ing-wen during...

Giant meatball of extinct mammoth unveiled in The Netherlands

Giant meatball of extinct mammoth unveiled in The Netherlands

by AsiaOne
March 29, 2023
0
4

AMSTERDAM - A giant meatball made from flesh cultivated using the DNA of an extinct woolly mammoth was unveiled on...

Endangered Komodo dragons hatch at Spanish zoo

Endangered Komodo dragons hatch at Spanish zoo

by AsiaOne
March 29, 2023
0
8

FUENGIROLA, Spain - Five Komodo dragon hatchlings have been born at a zoo in Spain, the first successful breeding of...

Most Popular

Google suspends Chinese app Pinduoduo from Play store after malware is found

Google suspends Chinese app Pinduoduo from Play store after malware is found

March 22, 2023
37
Russia boosts defences near Japan, accuses US of expanding Asia-Pacific presence

Russia boosts defences near Japan, accuses US of expanding Asia-Pacific presence

March 24, 2023
23
Boris Johnson says he did not lie over Covid-19 lockdown parties

Boris Johnson says he did not lie over Covid-19 lockdown parties

March 24, 2023
22
World Athletics bans transgender women

World Athletics bans transgender women

March 24, 2023
21
Rebels in Indonesia’s Papua release New Zealand hostage video

Rebels in Indonesia’s Papua release New Zealand hostage video

March 12, 2023
20
Biden speaks with California governor about Silicon Valley Bank: White House

Biden speaks with California governor about Silicon Valley Bank: White House

March 12, 2023
19

© 2020 By Khmer Daily News

No Result
View All Result
  • Home
  • Latest
  • Cambodia
  • ASIA
  • World
  • Business
  • Tech

© 2019 The Khmer Daily.

error: Content is protected !!