'U.S. Targets China's Top Chipmaking Plant After Huawei Mate 60 Pro' - Reuters News
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The Biden administration has intensified actions against China's leading chipmaker, SMIC, by restricting its most advanced factory from receiving more American imports, following its production of a sophisticated chip for Huawei's Mate 60 Pro. This move, part of escalating U.S.-China technology tensions, involved halting shipments from U.S. suppliers, notably Entegris, to SMIC's advanced plant. The restrictions aim to curb SMIC and Huawei's access to cutting-edge U.S. technology, amidst concerns over national security and technological supremacy.
February 21, 2024 | 4:22 pm
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Entegris, a supplier to SMIC, saw its shares drop by 1.9% after the U.S. Commerce Department suspended shipments to SMIC's advanced plant. This action directly impacts Entegris's operations and financial performance, given its role in supplying chipmaking materials and parts.
The direct regulatory action against SMIC, affecting Entegris's ability to supply, has led to a negative short-term impact on Entegris's stock price. Given the significance of Chinese sales to Entegris's revenue, further regulatory actions could pose additional risks.
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