SMIC ‘Potentially’ Broke Law If It Made Huawei Chip, US Says (2)

Chinese chipmaker Semiconductor Manufacturing International Corp. “potentially” broke American law if it manufactured a processor for sanctioned telecom giant Huawei Technologies Co., a senior US official said.

Under Secretary of Commerce for Industry and Security Alan Estevez was questioned about the 7-nanometer processor that SMIC made for Huawei during testimony before lawmakers Thursday. When asked by Foreign Affairs Committee Chairman Michael McCaul whether SMIC violated US controls, Estevez said “potentially, yes.”

The Chinese chipmaker’s shares slid as much as 5.5% in Hong Kong, its biggest intraday drop in about a month.

“We’ll assume that it was SMIC,” Estevez said. ...