On Wednesday, China’s SMIC, the country’s biggest chipmaker said, it is aware that Mong-song Liang, intends to resign from the board. His role in the company was that of co-chief executive.
SMIC is working to verify Liang’s plans to leave the company, reads a filing to the Shanghai stock exchange.
On Tuesday, a letter of resignation purportedly from Liang was circulating on the internet. The letter contained reasons for his departure from the company.
In 2017, Liang was appointed as SMIC’s co-CEO alongside Zhao Haijun.
According to semiconductor industry analyst Mark Li of Bernstein Research, Liang’s resignation is a “setback” for the company’s future technology progress.
With the news reaching the market, SMIC’s shares on Shanghai’s STAR Market fell by nearly 10% on Wednesday. Trading of the company’s shares on the Hong Kong Stock Exchange has been halted.
The United States has added SMIC along with a host of other Chinese companies to an Entity List, preventing U.S. investors from buying the company’s securities from late 2021.
According to a former staff of Taiwan Semiconductor Manufacturing Co Ltd, Liang was a key driver of SMIC’s attempts to move into more advanced manufacturing nodes.
On Tuesday, SMIC had announced the appointment of Chiang Shang-Yi, a former executive at TSMC, as the company’s executive director.