China's Top Chipmaker SMIC Exits New York Stock Exchange Amid Trade Tensions
Semiconductor Manufacturing International Corp plans to delist from the NYSE after 15 years, citing low trading volumes and compliance costs despite swirling U.S.-China trade war tensions.
China's largest chipmaker, Semiconductor Manufacturing International Corp (SMIC), announces plans to delist from the New York Stock Exchange by next month. The state-backed firm prepares to file a Form 25 on June 3, ending a 15-year run as a publicly traded company in the United States. The company states that limited trading volumes and the significant administrative burden of U.S. compliance drive this decision.
While SMIC officially denies any connection to the ongoing U.S.-China trade war, the move occurs during a turbulent period for Chinese tech firms. Huawei recently lands on a U.S. blacklist, causing key suppliers like Google, Intel, and Qualcomm to pause their business relationships. SMIC's departure from the NYSE fuels growing concerns about a deliberate or accidental split between American and Chinese technology ecosystems.
The company shifts its focus entirely to its existing Hong Kong listing, though it promises alternative trading options for investors holding U.S.-based ADRs. Despite generating a profit of $746.7 million in 2018, SMIC faces recent financial headwinds with a 19 percent year-over-year revenue drop in the first quarter. Shares in Hong Kong drop 4 percent on the news, while U.S. ADR trading volumes surge dramatically as investors react to the sudden exit.