The U.S. is considering blacklisting SMIC’s board of directors to clarify that it is willing to communicate to dispel misunderstandings.

Today, SMIC’s Hong Kong and A-shares plunged 20 per cent and 11 per cent respectively, mainly due to rumours that they would be blacklisted by the US. SMIC’s board of directors also issued a statement today saying the reports were false and that it was willing to communicate to dispel misunderstandings. The board’s announcement is almost consistent with the previous company statement, SMIC said the company strictly abides by the relevant national and regional laws and regulations, and on this basis has been operating legally in accordance with the rules.

SMIC said that since its inception, as an important member of the global semiconductor supply chain, customers throughout the United States, Europe and other Asian regions, its products and services are used for civilian and commercial use, never involved in military applications.

SMIC stressed that any reports of SMIC’s involvement in the army were false news and we were shocked and puzzled. SMIC is willing to communicate with relevant U.S. government departments in a sincere, open and transparent manner to resolve possible differences and misunderstandings.

The detailed statement is as follows:

SMIC International Integrated Circuit Manufacturing Co., Ltd. (“The Company” or “SMIC”) noted that U.S. time on Friday, September 4, 2020, reuters reported that U.S. government authorities are considering blacklisting SMIC, Chinese mainland’s largest chipmaker.

In this regard, the Company solemnly declares that SMIC, as an integrated circuit manufacturing enterprise operating internationally on the main board of the Stock Exchange of Hong Kong Limited and Chinese mainland Shanghai Stock Exchange, strictly abides by the laws and regulations of the relevant countries and regions, and has been operating legally and in accordance with the regulations on this basis;

And with a number of U.S. and internationally renowned semiconductor equipment suppliers, to establish good relations of cooperation for many years, the U.S. Department of Commerce Bureau of Industry and Security for many years for SMIC imports of equipment, has also issued a number of important export licenses.

At the same time, SMIC has been an important member of the global semiconductor supply chain since its inception, with customers in the United States, Europe and other Asia.

Continent, etc., its products and services are used for civilian and commercial use, never involved in military applications, has nothing to do with the Chinese military.

In 2016 and before, SMIC was officially recognized by the U.S. Department of Commerce as the “Ultimate Civilian Manufacturer” (Validated End-User), and several U.S. Department of Commerce officials visited SMIC on the ground.

We are therefore shocked and puzzled that any reports of SMIC involvement are false news.

SMIC is willing to communicate with relevant U.S. government departments in a sincere, open and transparent manner to resolve possible differences and misunderstandings. Shareholders and potential investors should exercise caution when buying and selling shares in the Company.

This announcement is heeded.

Board of Directors of SMIC Integrated Circuit Manufacturing Co., Ltd.

September 7, 2020.

The U.S. is considering blacklisting SMIC's board of directors to clarify that it is willing to communicate to dispel misunderstandings.