22 Saturday, May 25, 2019 13:51

China's biggest chipmaker has applied for 'voluntary delisting' from the New York Stock Exchange amid the trade war and Trump's crackdown on Chinese tech (SMI)

The largest chipmaker in China has applied for a voluntary delisting from the New York Stock Exchange as President Donald Trumps administration increases its crackdown on Chinese tech. Semiconductor Manufacturing International Corporation (SMIC) said in a Friday statement that it will file a form to delist with the US Securities and Exchange Commission (SEC) on June 3, and cease trading on June 13.

The company, whose primary listing is in Hong Kong, specializes in integrated circuit manufacturing and works with American companies like Qualcomm and Texas Instruments. Qualcomm, the Chinese telcom giant Huawei, and Belgian nanotechnology firm imec are minority shareholders in SMICs R&D arm. SMIC attributed its decision to delist to a number of considerations, which included limited trading volume of its ADSs [American depositary shares] relative to its worldwide trading volume, and the significant administrative burden and costs of maintaining the NYSE listings and reporting to the SEC.

Read SMICs full statement here.US President Donald Trump and Chinese President Xi Jinping at the Great Hall of the People in Beijing on November 9, 2017. NICOLAS ASFOURI/AFP/Getty Images SMIC made no mention of the ongoing trade war or the USs growing crackdown on Chinese tech in its Friday statement, and insisted that its decision to delist had nothing to do with either of those factors.

Washington and Beijing are in the throes of a yearlong trade war, in which both sides have imposed billions of dollars worth of additional tariffs on each others products.

Read more: Its been more than a year since the US-China trade war started. Heres a timeline of everything thats happened so far. Last week, the Trump administration labeled Chinese telcom giant Huawei a national security threat, and effectively banned it from doing business with US companies. Major tech companies in the US and around the world have severed ties with Huawei since.

There was some speculation that SMICs decision to delist was due to the trade war, CNBC reported. But a spokesperson for the Chinese company told CNBC: SMIC has been considering this migration for a long time and it has nothing to do with the trade war and Huawei incident.

The migration requires a long preparation and timing has coincided with the current trade rhetoric, which may lead to misconceptions, the spokesperson added. Its not clear if the trade war or Trumps penalizing Chinese tech affected SMICs American trades. Business Insider has contacted SMIC for comment.

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News Code: 176442  |  Insider
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