Chinese chip makers' shares slump after U.S. publishes new export rules

Hua Hong Grace Semiconductor

10/10/2022 03:13

SHANGHAI, Oct 10 (Reuters) - Shares in Chinese
semiconductor companies slumped on Monday, following the latest
U.S. crackdown on China's chipmaking industry to slow Beijing's
technological and military advances.
    The Biden administration published a sweeping set of export
controls on Friday, including a measure to cut China off from
certain semiconductor chips made anywhere in the world with U.S.
equipment.
    An index measuring China's semiconductor firms  .CSIH30184 
tumbled about 5%, and Shanghai's tech-focused board STAR Market 
 .STAR50  declined nearly 3% in early morning trade.
    The raft of measures could amount to the biggest shift in
U.S. policy toward shipping technology to China since the 1990s.
If effective, they could hobble China's chip manufacturing
industry by forcing American and foreign companies that use U.S.
technology to cut off support for some of China's leading
factories and chip designers.
    China's Semiconductor Manufacturing International Corp
(SMIC)  0981.HK  dropped nearly 5%, NAURA Technology Group Co
 002371.SZ  slumped 10% by the daily limit, and Hua Hong
Semiconductor Ltd  1347.HK  plunged roughly 9% by 0154 GMT.
 (Reporting by Jason Xue and Josh Horwitz; Editing by
Muralikumar Anantharaman)
 ((Jason.Xue@thomsonreuters.com;))