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Chipmaker CXMT moving forward with stock listing in Shanghai

A top Chinese chipmaker is moving forward with a stock listing in Shanghai after receiving assurances that its suppliers in the United States will not be affected by export curbs imposed on Beijing, a report said Wednesday.

American manufacturers of tools for making semiconductors have informed ChangXin Memory Technologies (CXMT) that they will be able to supply the firm’s new production lines, according to the Financial Times, citing three people with direct knowledge of the matter.

Washington last year brought in new export controls in an effort to limit the ability of Chinese entities to purchase and manufacture high-end chips with possible military applications.

China has sought self-reliance in the semiconductor industry in recent years and has criticised the restrictions as a bid to maintain American technological supremacy and contain Beijing’s rise.

Many suppliers of chipmaking equipment severed ties with Chinese partners after the controls were introduced.

Established in 2016, CXMT is based in the eastern city of Hefei and is one of China’s leading manufacturers of so-called DRAM memory chips.

The firm plans to steer clear of US curbs by using equipment that churns out more rudimentary chips, helping to shore up plans for a listing in Shanghai that will fund a “major expansion.”

Beijing has taken reciprocal action against Washington, announcing a probe into US firm Micron Technology — a leading memory chip manufacturer — citing the need to “safeguard national security”.

It has also called on the World Trade Organisation to review the curbs and similar ones introduced this year by the Netherlands and Japan. AFP

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