Chinese chipmaker shares tumble after U.S. issues new export rules By Reuters

© Reuters. FILE PHOTO: Semiconductor chips are seen on a computer circuit board in this illustration photo taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo

SHANGHAI (Reuters) – Shares of Chinese semiconductor companies tumbled on Monday, following the latest U.S. crackdown on China’s chipmaking industry to slow Beijing’s technological and military advances.

The Biden administration on Friday issued a sweeping set of export controls, including a measure to cut China off from certain semiconductor chips made anywhere in the world with American equipment.

An index measuring Chinese semiconductor companies fell about 5%, and Shanghai’s tech-focused board STAR Market fell nearly 3% in early morning trading.

The series of measures could be the biggest change in US policy on shipping technology to China since the 1990s. If effective, they could stifle China’s chipmaking industry by forcing US and foreign companies using US technology to cut support for some of China’s major chip factories and designers.

China’s Semiconductor Manufacturing International Corp (SMIC) fell nearly 5%, NAURA Technology Group Co fell 10% from the daily limit and Hua Hong Semiconductor Ltd plunged about 9% at 0154 GMT.

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