Semiconductor Manufacturing International (SMIC), one of China’s largest chipmakers, is delisting from the New York Stock Exchange (NYSE), stating the decision is not related to the heightened tensions between the United States and China, said CNBC.
The Shanghai-based component manufacturer worth $5.4 billion, has notified the NYSE it will apply for the voluntary delisting of its American depositary shares, or those that trade on a US exchange, the company said in a statement on Friday. The last day of trading of the ADSs on the NYSE will be on or about June 13.
The motivation for the withdrawal is that the company’s American depositary receipts listing in the US sees “low trading volume and high costs,” Semiconductor Manufacturing told CNBC. The company’s main listing is in Hong Kong.
Semiconductor Manufacturing is not only a chip leader in China, but it has a big footprint in the US. The company invested $280 million in an advanced assembly line with Qualcomm in 2015 and had a joint venture with the US chip giant and Huawei in the same year, according to the company website. Semiconductor Manufacturing had more than $3.3 billion in revenue in fiscal 2018, according to FactSet.