Chinese Chip Giant SMIC Delists From NYSE After Huawei Ban

Ravi Adwani - Jun 03, 2019

Chinese Chip Giant SMIC Delists From NYSE After Huawei Ban

After the U.S. Huawei ban, the Chinese chip giant SMIC is delisting itself from the NYSE, withdrawing from the U.S. stock exchange market.

It seems that the biggest chipmaker in China, SMIC (Semiconductor Manufacturing International Corporation) has a plan to withdraw itself from the NYSE - New York Stock Exchange. It was the low trade volumes that forced them to take a step back from the U.S exchange market. They stated the date to file the necessary delist form to be June 3rd. In addition, the last trading date should be on June 13th.

Chinese chip maker SMIC delist from NYSE
In the middle of the trade war between the U.S and China, another Chinese tech giant is delisting from the U.S.

About the chipmaker giant SMIC

SMIC provides high-tech circuit foundry and services with process nodes ranging from 0.35 micron-28 nanometers. Not long ago, they revealed the very little trading volumes they made in the U.S specifically. According to Friday’s South China morning post, they cited the numbers as a reason to delist from the U.S stock exchange.

According to the chipmaker, they have their reasons the proceed with the withdrawal. It was due to the huge administrative burden as well as the high cost of maintaining the listing.

SMIC has headquarters in multiple major cities, including Shanghai, Beijing, Shenzhen, and Tianjin. Additionally, their offices are around the world, in Europe, the U.S., Taiwan, Hong Kong, and Japan.

The Huawei incident

Chinese chip maker SMIC delist from NYSE
The delist of SMIC came not long after the Huawei ban.

In fact, the delisting decision comes after the act of the U.S last week to blacklist their tech company Huawei. President of the U.S Donald Trump signed an order to ban Huawei to ensure national security. For Huawei, they had close bonds with the government of China in the middle of the current China-US trade war.

At first, SMIC didn't comment immediately. What they did was to give words on CNBC, denying the relation between the delisting decision and the China-US trade deal.

Screenshot 1


Sort by Newest | Popular

Next Story