Chipmaker stocks take a dip as U.S. expands blacklist to more Chinese firms

Chipmaker AMD, which owns a joint venture with one of the Chinese firms added to the list, saw its stock slide 2.2%. (Pixabay)

The U.S. Commerce Department expanded its entity list to include five more Chinese companies, barring U.S. companies from supplying the Chinese firms with technology. The Commerce Department claimed the new additions are “acting contrary to the national security or foreign policy interests of the United States,” in an order (PDF) released last week.

The newly blacklisted companies include supercomputer maker Sugon; microchip designers Higon, Chengdu Haiguang Integrated Circuit and Chengdu Haiguang Microelectronics Technology; and the Wuxi Jiangnan Institute of Computing Technology.

The move follows the Commerce Department’s decision to add Huawei and its affiliates to the list in May. Several U.S. technology firms, including Google, have argued that blacklisting Huawei will hurt U.S. companies. U.S. chipmakers that supply chips to Huawei have also been working behind the scenes to ease the U.S. government ban on sales to the company.

Sponsored by Infosys

Infosys positioned as a Leader in Gartner Magic Quadrant for IT Services for Communications Service Providers, Worldwide 2020

The Gartner Magic Quadrant evaluated 12 vendors and Infosys was recognized for its completeness of vision and ability to execute.
Infosys leverages its global partner ecosystem, CSP-dedicated studio, design tools, and 5G Living Labs to boost service delivery. Innovative solutions such as the ‘Infosys Cortex2’ are driving business value for CSPs.

RELATED: Report: Quiet lobbying by U.S. chipmakers seeks to limit U.S. ban on sales to Huawei

News of the additions caused semiconductor stocks to dip slightly in the U.S. Crowd-sourced content service Seeking Alpha reported the Philadelphia Semiconductor Index dropped down 0.6%;  AMD, which runs a joint venture with Higon, dropped 2.2%. Investment firm Baird also lowered its target for Micron.

The expansion of the entity list comes just a week before U.S. President Donald Trump is planned to meet with China’s president Xi Jinping during the G20 summit in Japan. The two are expected to discuss trade relations between the continue countries amid an escalating trade war.

Read more on

Suggested Articles

Deal gives Marvell access to pulse amplitude modulation DSPs that Inphi has in its portfolio

Legendary Samsung Chairman Lee Kun-hee died earlier this week after six years of illness

Lab inside ST fab in Singapore will bring together scientists from A * STAR Institute of Microelectronics and Japan’s ULVAC