Skip to content

China’s Chip Maker Saw Its Stock Price Fall; Lost 24 Percent in First Week

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that China’s top semiconductor manufacturer SMIC had its IPO in Shanghai on July 16. One week later, the stock price dropped by 24 percent. SMIC’s stock in the Hong Kong Stock Exchange fell 33 percent at the same time. With the United States imposing sanctions on Huawei, SMIC is Huawei’s only hope for its critical chip supply. However, SMIC’s technology is three generations behind the market leader – Taiwan’s TSMC, which was Huawei’s primary chip manufacturer. SMIC, headquartered in Shanghai, voluntarily withdrew from the U.S. stock market in June 2019. Between 2005 and 2010, SMIC was accused of stealing TSMC’s intellectual property and settled the lawsuit by paying TSMC nearly US$400 million and surrendered eight percent of its company’s stock to TSMC.

Source: Sina, July 25, 2020