Mong Sung Liang (Mong Song Liang)

Biography

2020: Resignation from a position of the CEO of SMIC

In the middle of December, 2020 it became known of resignation Mong Sung of Liang who together Zhao Haijun heads the semiconductor company SMIC, largest in China. Dismissal of one of the CEOs is connected with the American sanctions imposed against a chipmpeyker.

As specifies Bloomberg with the link several online editions, Mong Sung Liang was dissatisfied with appointment of the former top manager of TSMC (the Taiwan competitor of SMIC) Chiang Shang-yi in Board of Directors of the company without his permission. Chiang Shang-and is attracted to the help in business in the conditions of the American sanctions.

The head of the largest Chinese chipmaker SMIC resigns under pressure of the American sanctions

Besides, because of the same sanctions the SMIC company will be excluded the U. S. stock index of MSCI — it will occur on January 5, 2020.

MSCI said that the decision on an exception of actions of the index was made after extensive consultations more than with one hundred market participants from the USA and other countries which noted that the decree "will affect negatively the investment potential of securities of the specified companies in terms of the international institutional investors". At the same time in MSCI noted that intend to create the new index into which the specified actions will be included.

As notes CNBC TV channel, China aims to development of the national semiconductor industry to become independent of foreign chipmakers. Work in this direction accelerated in the last several years against the background of growth of strength in the relations with the USA. SMIC is key components of strategy of the People's Republic of China in the market of chips.

Technology progress which SMIC achieved is directly connected with Liang — the analyst of Bernstein Mark Li says. —. Liang personally directed development of SMIC technologies, and his deposit directly led to mass production, for example, of 14-nanometer chips. According to us, Liang's leaving will have bigger effect, and future technology progress of SMIC can come to naught.

According to analysts, sanctions restrictions of the USA on SMIC can strike serious blow to perspectives of development of the semiconductor industry of China.

News about resignation of the co-director of SMIC and to an exception of actions of one of the world's largest indexes led to decline of quotations of the company by 5% to closing of the exchange on December 16, 2020.^[1]

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