Chinese chip stocks tumble after U.S. calls for new curbs on high-end tech
BEIJING — Chinese chip stocks fell Monday after the U.S. announced new export controls aimed at limiting Beijing's ability to produce advanced military systems.
The sweeping rules mean companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) said in a release Friday.
The rules, effective this month, expand on prior U.S. attempts to crimp Chinese companies' access to key tech.
Notably, the changes also mean foreign companies will need a license if they use American tools to produce specific high-end chips for sale to China.
«These rules make clear that foreign government actions that prevent BIS from making compliance determinations will impact a company's access to U.S. technology through addition to the Entity List,» the U.S. release said.
The U.S. said it would grant a temporary license from Oct. 21 through to April next year to allow businesses to manufacture some of the high-tech products in China for use outside the country.
China's largest chipmaker, Semiconductor Manufacturing International Corporation, traded 3% lower Monday afternoon in Hong Kong, amid a broader market sell-off.
Hua Hong Semiconductor was down by about 9%, while Shanghai Fudan Microelectronics plunged by more than 20% as of Monday afternoon.
Shares of U.S. chipmakers Nvidia and AMD tumbled in Friday's trading session as worries about falling demand dragged down the sector.
«The U.S. has been abusing export control measures to wantonly block and hobble Chinese enterprises,» Chinese Ministry of Foreign Affairs Spokesperson Mao Ning said at a briefing over the weekend, according to an official
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