SMIC confirmed that it had been hit by U.S. export restrictions, saying it had hoarded large amounts of goods over the winter.

On the evening of October 4, according to the latest news on the HKEx website, SMIC announced today that SMIC is aware that the U.S. Department of Commerce’s Bureau of Industry and Security has sent letters to some suppliers in accordance with U.S. export control regulations, and that some U.S. equipment, accessories and raw materials exported to SMIC will be subject to further restrictions under U.S. export control regulations, requiring an export license before it can continue to supply to SMIC.

SMIC confirms U.S. export restrictions: it is assessing the impact.

SMIC confirmed that it had been hit by U.S. export restrictions, saying it had hoarded large amounts of goods over the winter.

SMIC and the Bureau of Industry and Security have initiated initial exchanges on the export restrictions and will continue to actively communicate with relevant U.S. government departments.

In addition, the announcement mentioned that SMIC is evaluating the impact of the export restrictions on the Company’s production and business activities. The availability of equipment, accessories and raw materials based on some exports from the United States may be extended or inaccuracies, which may have a significant adverse effect on the Company’s future production and operations. SMIC will continue to follow up on this matter and will make further announcements in due course.

SMIC reiterates that it has always adhered to compliance with the relevant laws and regulations of the place of operation.

The rumor was confirmed.

On September 26th a letter suspected to have been sent to a US chip company by the US Department of Commerce’s Bureau of Industry and Security, or BIS, was exposed by US and British media. In the document, BIS said supplying SMIC and its affiliates could ultimately result in risks for application in the Chinese military. For this reason, BIS requires U.S. chip companies to apply for a license before supply.

Reuters said the U.S. government restricted exports to China’s largest chipmaker because it believed there was a military risk to equipment exported to SMIC and that the risk was “unacceptable.”

SMIC confirmed that it had been hit by U.S. export restrictions, saying it had hoarded large amounts of goods over the winter.

It also makes SMIC the second top Chinese technology company after Huawei to be hit by U.S. trade restrictions.

On September 27, SMIC announced that it was aware that on Saturday, September 26, 2020, a media network had inquired or forwarded a document suspected to have been issued by the Bureau of Industry and Security of the U.S. Department of Commerce, according to which certain products exported to SMIC and its subsidiaries and joint ventures would be subject to export controls.

As of the date of disclosure of this announcement, the Company has not received such official information. The Company reiterates that SMIC only provides products and services to end users for both civilian and commercial use. The company has nothing to do with the Chinese military and does not produce for any military end users. The Company will continue to pay attention to the relevant information, and will strictly comply with the relevant laws and regulations to fulfill the obligation to disclose information, please investors rational investment, pay attention to investment risks.

The Ministry of Foreign Affairs also responded on the 28th of last month that, as a matter of principle, China firmly opposes the U.S. government’s generalization of the concept of national security, violates the principles of market economy and fair competition, violates international economic and trade rules, abuses restrictions such as export controls, and unjustifiedly depresses Chinese enterprises and undermines the normal international economic and trade order. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.

Food storage for the winter? Sources said SMIC to equipment, parts vendors hoarding goods.

Sources said that SMIC has been “food storage for the winter.”

SMIC, China’s largest chipmaker, is “hoarding” key production equipment and important replacement parts, and is even working with other Chinese chipmakers to build a shared stockpile of such components and has set up a central warehouse to store them,media reported.

SMIC’s purchases from upstream suppliers in the US, Europe and Japan have exceeded full-year 2020 demand, with purchases including process equipment such as etching, lithography and wafer cleaners, as well as test benches, and supplies to maintain equipment operations, according to people familiar with the matter.

Second-quarter results showed SMIC’s sales for the second quarter of 2020 were $939 million, up 3.7% quarter-on-quarter and 18.7% year-on-year. Gross margin for the second quarter of 2020 was US$249 million, up 6.4% YoY and 64.5% YoY. Risk production of 14nm chips has been started, with 14/28nm advanced manufacturing accounting for 9.1%. Currently, a third of SMIC’s customers are in the United States.

In July of this year, SMIC landed on the Science and Technology Board, becoming the first company in China to achieve the “A-H” at the same time. As of the latest, SMIC’s market capitalisation of A-shares, Hong Kong shares and US shares is RMB382.227 billion, HK$139.495 billion and US$5.465 billion, respectively.

SMIC confirmed that it had been hit by U.S. export restrictions, saying it had hoarded large amounts of goods over the winter.

Sony wants to continue supplying Huawei!

Less than a month after the U.S. government’s ban on Huawei went into effect, Japanese media reported that Sony and Kioxia, formerly Toshiba Storage, had applied to the U.S. Department of Commerce to continue supplying Huawei. But as of March 3, their application had not been approved.

SMIC confirmed that it had been hit by U.S. export restrictions, saying it had hoarded large amounts of goods over the winter.

Sony and Kioxia have stopped supplying Huawei since the U.S. semiconductor export ban came into effect on September 15, Japan’s Asaho News reported Thursday. But Huawei is a key customer of both companies, and both Sony and Kioxia risk a worsening earnings outlook without U.S. permission.

Kioxia is reported to be primarily in the semiconductor memory business, and because its business is primarily smartphone-related, the company has a lot of business for Huawei. Nearly 80 percent of sony’s sales of “image sensor” semiconductors come from the smartphone business, with reports that the annual deal between Sony and Huawei could reach hundreds of billions of yen.

SMIC confirmed that it had been hit by U.S. export restrictions, saying it had hoarded large amounts of goods over the winter.

The Asah Shim said production speeds at both companies had slowed without foreseeing the prospects for a deal with Huawei.

On September 15th the US Department of Commerce’s ban on chip upgrades for Huawei and its subsidiaries came into effect. Under the U.S. government’s ban, no chips developed or manufactured based on U.S. software or technology will be supplied to Huawei from September 15 unless special permission is granted.

However, the U.S. “ban” has left many international companies secretly bitter. Japan Economic News reported on September 16th that Japanese parts exports were affected by 1 trillion yen (about 0.065 yuan). South Korea’s semiconductor industry estimates that the annual loss to the country’s semiconductor industry will be 10 trillion won if huawei is banned from exporting for more than a year.