SMIC Delisting Raises Question Mark Over China Tech

SMIC’s delisting of its American Depositary Receipts from the NYSE is prompting people to ask: Is this the first of other delistings of China chip stocks?

The question is being asked because SMIC’s shares have largely been ignored by investors.

And the reason for that is seen as SMIC’s inability to offer leading edge processes. Its best process is still the eight year-old 28nm.

With foundry customers only using SMIC for trailing edge ICs, investors have come to see SMIC as mainly a domestic China play – 59% of its revenues come from Chinese customers.

Perceived as a domestically focused technological laggard, SMIC’s shares are one of the least traded Chinese company shares on the NYSE.

Which leads analysts to ask: Is this view of SMIC going to become the prevailing investor view of China chip companies?

The trade dispute and the withholding of US infrastructure equipment and ICs from China – resulting in  dire effects on the Chinese tech industry – have demonstrated to the world that China’s technology is lagging the world’s best.


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  1. 59% of its revenues come from Chinese customers – incorrect 59% of it’s revenue comes from US customers and British customers, who purchase the open source Raspberry Pi small single board computers, like the kind used in the NASA JPL Rover which use’s SMIC chips manufactured by Huawei and produced by HiSilicon which the United States and it’s department of Commerce has recently banned. Talk about cutting off your own foot to spite your own face – The US with it more recent action’s against the Chinese semi-conductor has successfully levied a ban against it’s own technology that it itself exports around the world. You just banned the world’s smallest best selling single board computer that has shipped more the 30 Million Units.

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