US firms must now apply for a license to export certain products to the chipmaker, the Commerce Dept. The US stopped short of placing SMIC on the so-called entity list, which means the restrictions are not yet as severe as those imposed on China’s Huawei Technologies Co. The SMIC ruling was a compromise between the Departments of Defense and Commerce and moderates in the Trump administration, according to one person familiar with the negotiations. The news lifted shares of SMIC’s rivals, with United Microelectronics Corp. surging by the 10% daily limit in Taipei. Even though SMIC shares have more than halved from the record high set in July, some investors are recommending caution because the U.S. measures may derail its efforts to catch up to TSMC, the world’s largest contract chipmaker.

Source: Mint September 28, 2020 08:15 UTC