QCOM - U.S. to blacklist dozens of Chinese firms including SMIC

Shares of Semiconductor Manufacturing International (SMICY) slumped 5.2% in Hong Kong after Reuters reported that China's biggest chipmaker, along with 80 other companies, will be added to the U.S. Commerce Department's Entity List.The designation will deny SMIC access to U.S. technology from software to circuitry, on top of less severe curbs imposed in September, when the U.S. placed it on an export restrictions list for supplying the military.Bigger picture: SMIC, which is a supplier to Qualcomm (QCOM) and Broadcom (AVGO), lies at the heart of China's ambition to build a high caliber chipmaking industry and wean itself off of American technology. Beijing is also planning to provide broad support for so-called third-generation semiconductors in its next five-year plan to boost domestic self-sufficiency.

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U.S. to blacklist dozens of Chinese firms including SMIC