SMIC said the move was related to a lack of trading in its American depositary shares (ADSs) rather than other factors. After the delisting, American investors and holders of SMIC ADSs will continue to be able to trade them in the US over-the-counter market.
The necessary filing of Form 25 with the Securities and Exchange Commission is due to happen on or about June 3 and trading will cease from about June 13. SMIC shares will continue to be traded on the Hong Kong Stock Exchange.
The delist decision comes soon after the US blacklisted Chinese technology giant Huawei over national security concerns amid an escalating US-China trade war. SMIC reportedly re-iterated that its decision was not related to the recent rhetoric. “SMIC has been considering this migration for a long time and it has nothing to do with the trade war and Huawei incident,” CNBC quoted a SMIC spokesperson as saying.
SMIC is mainland China’s largest foundry and provides IC foundry and technology services from 0.35 micron down to 28nm. It has 300mm and 200mm fabs in Shanghai and Beijing. It has 200mm wafer fabs in Tianjin and Shenzhen.
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