SMIC: Further Explanation Announcement on U.S. Export Restrictions

On the evening of the 4th, SMIC (SEHK: 00981) issued an announcement on the Hong Kong Stock Exchange confirming that it is true that some suppliers have received further restrictions from US export control regulations, and are evaluating the impact of the export restrictions on the company’s production and business activities. On October 9, SMIC issued a further clarification announcement on US export restrictions, which was published on the Shanghai Stock Exchange today (9).

The announcement stated that after several days of inquiries and discussions with suppliers, the company learned that the Bureau of Industry and Security of the U.S. Department of Commerce had issued letters to some suppliers in accordance with the U.S. export control regulations, exporting to SMIC. Some U.S. equipment, accessories and raw materials will be further restricted by U.S. export control regulations, and only after applying for an export license in advance can continue to supply to SMIC.

SMIC said that in response to the export restrictions, the company and the US Bureau of Industry and Security have launched preliminary exchanges, and will continue to actively strengthen communication with relevant US departments.

The announcement further pointed out that “the company is evaluating the impact of the export restrictions on the company’s production and operation activities. Due to the extended or inaccurate supply period of some equipment, accessories and raw materials exported from the United States, the company’s future production and operation may have consequences. Important adverse impact.” At the same time, it emphasized that “the company has always adhered to compliant operations and abide by the relevant laws and regulations of the place of operation.”

  

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