Nov 12 (Reuters) - China's Semiconductor Manufacturing
International Corp (SMIC) is facing some delays in
getting U.S.-made equipment, parts and raw materials, it said on
Thursday, after Washington imposed export restrictions against
SMIC, China's largest contract chipmaker, has been among
several Chinese tech firms including Huawei Technologies Co Ltd
that have been targeted by the Trump Administration
over national security concerns.
In September, the U.S. Commerce Department's Bureau of
Industry and Security informed some firms that they need to
obtain a license before supplying goods and services to SMIC
because of "unacceptable risk" that such exports could be
diverted to military end use. SMIC has said it has no
relationship with the Chinese military.
SMIC, which reported a 32.6% rise in third-quarter revenue,
told an earnings conference call that it was operating normally
though the export controls would have a short term, but
controllable impact on the firm.
"Our capital expenditure plan this year has fallen from $6.7
billion to $5.9 billion, mainly because of two reasons: firstly,
U.S. export controls has led to supply delays in some equipment,
or there is some uncertainty. Secondly, logistics reasons caused
delays to the arrival of some equipment," said Chief Financial
Officer Gao Yonggang.
Co-CEO Liang Mongsong said the firm was actively
communicating with the U.S. government and working with U.S.
suppliers to apply for required export licenses.
The chipmaker, as with competitors such as global market
leader Taiwan Semiconductor Manufacturing Co Ltd,
relies heavily on equipment from U.S.-based suppliers.
Shares in SMIC rose 2% on Thursday, against a 0.45% decline
in the Hang Seng Index.
(Reporting by Se Young Lee; Additional reporting by Brenda Goh
in Shanghai; Editing by Kim Coghill and Christopher Cushing)