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China has been on a drive to become more self-reliant in semiconductors, a move that has accelerated in the past few years as tensions with the U.S. rose. SMIC is key to China’s ambitions.
However, Washington has sought to make it harder for China’s industry to catch up. In September, the U.S. reportedly imposed sanctions on SMIC that made it harder for it to acquire the American technology that it needs. This month, SMIC was added to the U.S. blacklist of alleged Chinese military companies.
SMIC’s Hong Kong-listed shares were down 4% at around 2:59 p.m. local time. The company’s Shanghai-listed shares were around 5.5% lower.