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Export Restrictions on SMIC to Have ‘Manageable’ Impact

Semiconductor Manufacturing International Corp. has “deep regret” about the Trump administration imposing national security export restrictions on China’s largest chipmaker (see 2009080057), said SMIC Chairman Zhou Zixue on a Q3 investor call Wednesday. Though the restrictions “will have an impact…

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on SMIC in the near term, we believe it’s manageable,” he said. “The company will maintain close cooperation with suppliers and customers and continue to maintain active communication with the relevant department of the United States government working to resolve possible differences.” SMIC supplies products and services only for “civilian end users,” said co-CEO Zhao Haijun. “SMIC strictly complies with the laws and regulations of all jurisdictions where we conduct business. Over the years, we have established good cooperative relations with well-known customers and semiconductor equipment suppliers in the United States and internationally.” The company is working with U.S. suppliers to apply for export licenses, he said: It risks longer delivery lead times for equipment and raw materials due to the restrictions.