Suddenly black swan! SMIC is sanctioned by the United States! More Hoarding?

 Suddenly black swan! SMIC is sanctioned by the United States! More Hoarding?

In response to the export restrictions, SMIC and the Bureau of industry and security of the United States have conducted preliminary exchanges and will continue to actively communicate with relevant U.S. government departments.

In addition, the announcement mentioned that SMIC is evaluating the impact of the export restrictions on the companys production and operation activities. Based on the fact that the supply period of some equipment, accessories and raw materials exported from the United States will be extended or inaccurate, which may have an important adverse impact on the companys future production and operation. SMIC will continue to follow up the matter and issue further announcements in due course.

The rumor was confirmed

On September 26, a letter suspected to have been sent by the Bureau of industry and security (BIS) of the US Ministry of Commerce to the US chip company was exposed by the US and British media. In the document, BIS said the supply to SMIC and its subsidiaries may eventually result in the risk of application in Chinas military. Based on this, BIS requires us chip companies to apply for license before supply.

Reuters said the U.S. government imposed export restrictions on Chinas largest chipmaker because it believed that the equipment exported to SMIC had a military risk and that the risk was unacceptable..

This also makes SMIC the second top Chinese technology enterprise to be restricted by US trade after Huawei.

As of the disclosure date of this announcement, the company has not received such official information. The company reiterated that SMIC only provides products and services for civil and commercial end users. The company has nothing to do with the Chinese military, nor does it produce for any military end-users. The company will continue to pay attention to the relevant information, and will strictly comply with the relevant laws and regulations to perform the obligation of information disclosure. Please invest rationally and pay attention to the investment risk.

The Ministry of foreign affairs also responded on the 28th of last month that, as a principle, China firmly opposes the U.S. governments generalization of the concept of national security, violating the principles of market economy and fair competition, violating international economic and trade rules, abusing export control and other restrictive measures, unreasonably suppressing Chinese enterprises and destroying the normal international economic and trade order. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.

Storing grain for winter? According to the news, SMIC is hoarding goods to equipment and parts manufacturers

According to people familiar with the matter, SMICs procurement scale from upstream suppliers in the United States, Europe and Japan has exceeded the demand for the whole year of 2020. The procurement projects include etching, lithography, wafer cleaning and other process equipment and testing machines, and the procurement volume of relevant consumables used to maintain the operation of the equipment is more than one year required.

According to the second quarter financial report, SMICs sales volume in the second quarter of 2020 was $939 million, up 3.7% month on month and 18.7% year-on-year. In the second quarter of 2020, the gross profit was 249 million US dollars, with a month on month increase of 6.4% and a year-on-year increase of 64.5%. The company has started mass production of 14nm chips at risk, with advanced production of 14 / 28nm accounting for 9.1%. Currently, 1 / 4 of SMICs customers are in the United States.

In July this year, SMIC international landed on the science and technology innovation board, becoming the first domestic science and technology innovation red chip enterprise to realize a + H simultaneously. As of the latest, the market value of SMIC in A-shares, Hong Kong shares and US shares is 382.227 billion yuan, 139.495 billion Hong Kong dollars and 5.465 billion US dollars respectively.

Sony hopes to continue to supply to China!

Japans Asahi Shimbun reported on the 4th that Sony and Kaixia have stopped supplying to China since the US ban on semiconductor exports to Huawei took effect on September 15th. But Huawei is a key customer of the two companies, and without the U.S. license, both Sony and armored face the risk of deteriorating revenue prospects.

It is reported that the company mainly deals in semiconductor memory business. As its related business is mainly related to smart phones, it has a lot of business for Huawei. Nearly 80% of the sales of image sensor semiconductors developed by Sony come from the smartphone business. It is reported that the annual transaction volume between Sony and Huawei can reach hundreds of billions of yen.

Asahi Shimbun said the production speed of both companies had slowed down as the prospect of a deal with Huawei could not be foreseen.

On September 15, the U.S. Department of Commerces ban on chip upgrades against Huawei and its subsidiaries took effect. According to the ban issued by the U.S. government, since September 15, no chip developed or produced based on us software or technology can be supplied to Huawei unless there is a special license.

However, this ban of the US side has made many international enterprises complain secretly. The Japanese Economic News reported on September 16 that Japanese enterprises export of spare parts was affected by a scale of 1 trillion yen (about 0.065 yuan). According to the calculation of South Korean semiconductor industry, the annual loss of South Korean semiconductor industry will reach 10 trillion won when the ban on exporting Huawei lasts for more than one year.

Source: Yang Qian, editor in charge of China fund daily_ NF4425