(Updates attribution, adds executive comments)
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 the firm.
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)