SMIC Delisting Raises Question Mark Over China Tech

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electronicsweekly.com, May. 30, 2019 – 

SMIC's delisting of its American Depositary Receipts from the NYSE is prompting people to ask: Is this the first of other delistings of China chip stocks?

The question is being asked because SMIC's shares have largely been ignored by investors.

And the reason for that is seen as SMIC's inability to offer leading edge processes. Its best process is still the eight year-old 28nm.

With foundry customers only using SMIC for trailing edge ICs, investors have come to see SMIC as mainly a domestic China play – 59% of its revenues come from Chinese customers.

Perceived as a domestically focused technological laggard, SMIC's shares are one of the least traded Chinese company shares on the NYSE.

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