SMIC’s rating downgraded due to its close tie to Huawei
Posted On September 16, 2020
Shanghai-based Semiconductor Manufacturing International Corp. (SMIC) has recently applied to the Trump administration to continue supplying Huawei with chips. However, as being the largest chipmaker in China, SMIC itself is under a threat of having export restriction imposed by the US government. In addition, the company’s rating was lowered to “sell” by Chinese broker Huajing Securities for its business outlook being greatly bonded with Huawei and its technical inability to produce advanced 5-nm and 7-nm chips.