Chipmaker SMIC inventory falls as co-CEO plans to resign, it faces MSCI elimination

A close-up of a CPU socket and motherboard lying on the table.

Narumon Bowonkitwanchai | Moment | Getty Images

China was on the way to becoming more independent in semiconductors. This move has accelerated in recent years as tensions with the US increased. SMIC is key to China’s ambitions.

However, Washington has tried to make it harder for Chinese industry to catch up. The US reportedly imposed sanctions on SMIC in September that made it difficult for it to acquire the American technology it needed. That month, SMIC was blacklisted as suspected Chinese military companies in the US.

Hong Kong-listed SMIC shares fell 4% at around 2:59 p.m. local time. The company’s Shanghai-listed shares fell around 5.5%.

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