[ET Net News Agency, 22 December 2020] Goldman Sachs lowered its target price for SMIC
(00981) to HK$23.3 from HK$26.7 and maintained its "buy" rating.
The research house noted that the Bureau of Industry and Security (BIS) in the US
Department of Commerce added SMIC to the entity list on Friday 18 December, and noted that
items uniquely required to produce semiconductors at advanced technology nodes - 10
nanometers or below - will be subject to a presumption of denial.
Goldman removed revenue for N+1 (8nm) and more advanced nodes from its model. It
previously modeled SMIC's N+1 (8nm) to start revenue contribution in 2022, 7nm in 2023,
5nm in 2025, and 3nm in 2027, and these advanced nodes to contribute 7%-8% of SMIC's
revenue in 2025-28. (KL)