Shares of SMIC, China’s biggest contract chipmaker, plunged over 19% on Monday, after the U.S. government said it was considering putting export restrictions on the company.
The firm’s Hong Kong-listed shares were down 19.75% at 18.98 Hong Kong dollars as of 11:33 a.m. local time. SMIC’s recently listed Shanghai shares were down 9.2% at 60.18 yuan.
SMIC also relies on American chipmaking equipment. If it were to be added to the Entity List, that could make it more difficult for the company to obtain the gear needed to develop its capabilities and hurt production.