SMIC Says Undertakes 'preliminary Exchanges' With U.S. Regarding Export Restrictions On Suppliers

(RTTNews) - Semiconductor Manufacturing International Corp. (SMI) said in a regulatory filing on Sunday that it has undertaken preliminary exchanges with the U.S. Bureau of Industry and Security regarding export restrictions. It will continue to actively facilitate communications with the relevant U.S. government departments.

In the filing to the Hong Kong Stock Exchange, the Chinese chipmaker said the U.S. Bureau of Industry and Security had issued letters to the company's U.S. suppliers, by which the supply of certain U.S. equipment, accessories and raw materials to SMIC will be subject to further restrictions.

The company also said it is conducting assessments on the impact of BIS's export restrictions on the company's production and operation activities. The export restrictions could have material adverse effects on its future production and operations.

The company reiterated that it has been operating in compliance with the relevant laws and regulations of all jurisdictions where it performs its businesses.

Last month, Semiconductor Manufacturing International clarified that it had no relationship with the Chinese military. Any assumptions of the company's ties with the Chinese military were untrue statements and false accusations.

The clarification had came after the U.S. media reported that the U.S. government was consideration to add the company to a trade blacklist.

The Trump administration's move was part of a continued effort to put pressure on China's technology firms and would mark a major escalation in the tech battle between the U.S. and China.

Semiconductor Manufacturing had said that in and before 2016, it had been granted Validated End-User authorization by the Bureau of Industry and Security and the company hosted several visits from U.S. government officials.