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16.12.2020

China’s chief chipmaker co-CEO departs abruptly

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After the announcement about Liang resignation, SMIC’s Shanghai shares dropped more than 7.0%

Stocks impacted: Semiconductor Manufacturing Int'l (0981)

Semiconductor Manufacturing International Corp. reported on Wednesday about the surprise resignation of a top executive. Now, SMIC, which is China’s largest foundry specializing in the manufacture of semiconductors, is checking the veracity of a resignation letter circulated in media outlets and reportedly written by co-Chief Executive Officer Liang Mong Song. Liang was appointed SMIC’s co-CEO alongside Zhao Haijun in 2017. According to some reports, Liang quit after SMIC appointed a vice-chairman to the board without consulting him. As a reminder, the U.S. Department of Defense added the company to a blacklist of alleged Chinese military companies on Dec. 4, labeling it as a national security threat. After the announcement about Liang resignation, SMIC’s Shanghai shares dropped more than 7.0% after trading as much as nearly 10% lower. In Hong Kong, the company’s stocks finished 4.24% lower.

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