Chinese chipmaker SMIC falls 5% as co-CEO plans to resign

Shares of Chinese chipmaker SMIC fell over 5% on Wednesday after the company said it was aware its co-CEO planned to resign and as its stock was set to be removed from MSCI indexes.

SMIC said it had become "aware" of co-CEO Mong Song Liang's "intention of conditional resignation."

The company said it was "verifying" with Liang regarding his intention to resign.

Meanwhile, American stock index company MSCI, one of the world's largest, said it would remove SMIC from its indexes from Jan. 5, 2021, among other Chinese companies. It said it was doing so after these companies were named in a US executive order that bans American companies and individuals from owning Chinese companies' shares that the White House alleges supports China's military.

China has been driven to become more self-reliant in semiconductors, a move that has accelerated in the past few years as tensions with the US rose. SMIC is key to China's ambitions.
However, Washington has sought to make it harder for China's industry to catch up. In September, the US reportedly imposed sanctions on SMIC, making it harder for it to acquire the American technology it needs. This month, SMIC was added to the US blacklist of alleged Chinese military companies.