China’s top chipmaker just lost a quarter of its board overnight
Semiconductor Manufacturing International Corporation (SMIC) announced a wave of resignations in But the company has also faced a series of public setbacks recently, including US threats to its business while trying to play a critical role in China’s mission to become more self-sufficient in semiconductors.Last year, the US Department of Defense added SMIC to a list of companies the agency claimed were owned or controlled by the Chinese military, a decision that meant SMIC would be subject to restrictions like an inability to accept American investment.SMIC said at the time that its inclusion on the list would have “no major impact” on its operations, and that it had no relationship with the Chinese military.The firm’s troubles were later compounded by a separate decision by the US Department of Commerce to add it to the SMIC entered the US government’s crosshairs as tensions between Washington and Beijing escalated over a number of fronts, including the future of technology.Cutting-edge chip technology lies at the heart of that. Much of China’s supply of chipsets has historically come from foreign companies, which power everything from Chinese smartphones and computers to telecommunications gear. Beijing has pledged to improve its chipmaking technology. SMIC, whose major shareholders are state-owned companies, said last year that it wanted to invest in technology and catch up with its global competitors.The company did not immediately respond to a request for further comment.But “since SMIC was placed on an entity list by the US … the company has faced tremendous challenges in production and operations,” Gao told analysts on Friday.”The year 2021 is not an ordinary year,” he added.— CNN’s Beijing bureau contributed to this report.