Shares of Semiconductor Manufacturing International Corp.(SMIC) tumbled following reports that the US may put the Chinese mainland’s most advanced contract chip manufacturer on an economic blacklist, reported Caixin.
On Monday, SMIC closed down 22.9% in Hong Kong, while the company closed down 11.3% in Shanghai, wiping more than $5 billion off its market cap.
The sell-off followed media reports that Washington may put the company on the Commerce Department’s so-called “Entity List,” which would forbid US companies from doing business with SMIC unless they obtain a government license.
